Billions of dollars were taken to Russia despite the sanctions — Reuters

According to customs data, approximately $2.3 billion in US dollars and euros were shipped to Russia. This happend after the US and EU imposed a ban on the export of their banknotes in March 2022. The ban followed the full-scale invasion of Ukraine.

This was reported by Reuters.

«Previously unreleased figures suggest that Russia has managed to circumvent sanctions that block cash imports.»

Customs data indicate that cash was transported to Russia from countries such as the UAE and Turkey. They have not imposed restrictions on trade with Russia. The countries of origin for more than half of the total amount are not specified in the documents.

In December, the US government threatened penalties against financial institutions that help Russia circumvent sanctions. They also imposed restrictions on companies from third countries for 2023 and 2024.

The Chinese yuan has overtaken the dollar as the best-selling foreign currency in Moscow, although significant payment problems persist.

«Many Russians still prefer to have foreign currency in cash for traveling abroad, as well as for small imports and domestic savings. For individuals, the dollar remains a reliable currency.»

Russia began labeling the dollar and euro as «toxic» in 2022, as large-scale sanctions cut off its access to the global financial system, complicating payments and trade. About $300 billion of the Bank of Russia’s foreign exchange reserves in Europe were frozen.

The Central Bank of the Russian Federation quickly restricted cash foreign currency withdrawals by individuals after the invasion of Ukraine in an attempt to support the ruble. It is noted that from February 2022 to the end of 2023, only $98 million in dollars and euros were taken out of Russia. In contrast, the inflow of foreign currency was significantly higher.

According to customs records and sources, more than a quarter of the $2.27 billion in banknotes was imported by banks, with much of it used as payment for precious metals.