Putin has a reason to rub his hands: The money is still coming

The previously unpublished customs data obtained by Reuters shows that Russia has been able to circumvent sanctions that block cash imports, suggesting that dollars and euros remain useful tools for trade and travel, even as Moscow seeks to reduce exposure to these currencies.

Customs data, obtained from a commercial provider recording and compiling the information, shows that the cash was transported to Russia from countries such as the UAE and Turkey, which have not imposed restrictions on trade with Russia. The country of origin was not specified for more than half of the total amount, reports the Biznis portal.

The US government threatened in December to sanction financial institutions that help Russia circumvent sanctions and imposed sanctions on companies from third countries during 2023 and 2024. The Chinese yuan has overtaken the dollar to become the most traded foreign currency in Moscow, although significant payment problems remain.

Dmitry Polevoy, head of investments at Astra Asset Management in Russia, said many Russians still want foreign currency in cash for trips abroad, as well as for smaller imports and domestic savings. "For individuals, the dollar is still a reliable currency," Polevoy said.

Russia began designating the dollar and euro as "toxic" currencies in 2022, when sweeping sanctions reduced its access to the global financial system, disrupting payments and trade. About 300 billion dollars of foreign reserves of the Bank of Russia in Europe have been frozen. The European Commission announced that it cannot comment on individual cases of the application of sanctions.