Data Shows Surge in Cash Imports to Russia Despite Sanctions, Reuters Reports

Since the US and the EU banned the export of their banknotes to Russia in March 2022, almost $2.3 billion in cash has flowed into the Russian Federation, according to Reuters.

The customs data obtained from a commercial supplier show that the cash entered Russia from countries such as the UAE and Turkey, which did not impose restrictions on trade with the Russian Federation even after its full-scale invasion of Ukraine. At the same time, the country from which more than half of the currency comes to Russia was not specified in the documents.

In December, the US government warned financial institutions of potential penalties for aiding Russia to evade sanctions and has since imposed sanctions on companies from third countries throughout 2023 and 2024.

The customs records span from March 2022 to December 2023. The documents reveal a significant increase in cash imports leading up to the invasion. Between November 2021 and February 2022, Russia received $18.9 billion in dollar and euro banknotes, a sharp rise compared to just $17 million in the four months prior.

Daniel Pickard, International Trade & National Security Practice Group Leader at US law firm Buchanan Ingersoll & Rooney said that the active inflow of currency before the invasion suggests that the Russians wanted to protect themselves from possible sanctions in this way.

"While the US and its allies have learned the importance of collective action in maximizing economic consequences, Russia has been learning how to avoid and mitigate those same consequences," Pickard said. 

According to the data, only $98 million in dollar and euro banknotes exited Russia between February 2022 and the end of 2023. In contrast, foreign currency inflows were significantly higher.