Around $2.3 billion in dollar and euro bills have been shipped to Russia since the U.S. and EU banned the export of their banknotes following the invasion of Ukraine in March 2022, according to customs data seen by Reuters. These figures suggest Russia has found ways to bypass sanctions and continues to use these currencies for trade and travel, despite efforts to reduce reliance on hard currencies.
The cash was transported from countries like the UAE and Turkey, which have not restricted trade with Russia. The origin of more than half of the cash remains undisclosed.
Even as China’s yuan overtakes the dollar in Moscow, foreign currency in cash remains a necessity for many Russians. Dmitry Polevoy of Astra Asset Management noted that individuals still prefer the dollar for trips abroad, small imports, and savings.
The U.S. and its allies have imposed sanctions on third-country companies throughout 2023 and 2024. However, Russia’s central bank restricted foreign currency withdrawals following the invasion to stabilize the rouble. Between February 2022 and the end of 2023, just $98 million in dollar and euro banknotes left Russia, while inflows remained significantly higher.
Aero-Trade, a company involved in duty-free shopping services, was the largest declarant of foreign currency, accounting for around $1.5 billion in bills. However, the company denies involvement in supplying hard currency to Russia.
Yves Rocher Vostok, a subsidiary of the French cosmetics group Yves Rocher, was linked to a €20 million shipment in 2022 but denies any connection with Aero-Trade or involvement in sanction violations.