Reuters: Despite the sanctions, billions of dollars and euros go to Russia

Despite the sanctions, cash continues to flow to the Russian Federation Photo: Purchase Licensing Rights

Despite the sanctions, about 2.3 billion dollars and euros have been sent to Russia since the United States and the European Union banned the export of their banknotes in March 2022.

This was reported by Reuters with reference to customs data

The publication indicates that Russia has managed to bypass sanctions that block the import of cash. Customs data obtained from a commercial supplier show that the cash was imported into Russia from countries such as the UAE and Turkey, which have not imposed restrictions on trade with Russia. The country of origin of more than half of the total amount was not specified in the documents.

Head of Astra Asset Management's investment department in Russia, Dmitry Polevoy, says that many Russians still want to have cash foreign currency for trips abroad, as well as for small imports and domestic savings. He adds that for «private individuals, the dollar is still a reliable currency.»

According to customs documents, the surge in cash imports occurred in the period before the full-scale invasion. Between November 2021 and February 2022, $18.9 billion worth of dollar and euro banknotes were imported into Russia, compared to just $17 million in the previous four months. The surge in supplies is said to indicate that some Russians wanted to protect themselves from possible sanctions.

After the invasion of Ukraine, the Russian central bank restricted cash withdrawals of foreign currency by individuals in an attempt to support the ruble. According to the data, between February 2022 and the end of 2023, only $98 million in dollar and euro banknotes were exported from Russia. The inflow of foreign currency, on the contrary, was much higher.

We will remind that on Monday, June 24, the Council of the EU approved the 14th package of economic and individual restrictive sanctions against Russia.