Despite Sanctions, Russia Receives Billions in Cash

China's yuan has become the most traded foreign currency in Moscow, surpassing the US dollar, despite ongoing payment issues and significant international sanctions. The sanctions, imposed by the United States and the European Union following Russia's invasion of Ukraine in 2022, have aimed to limit Russia's access to the global financial system. This has included banning the export of dollar and euro banknotes to Russia. Nonetheless, customs data obtained from a commercial supplier reveals that approximately $2.3 billion in dollar and euro bills have been shipped to Russia since the sanctions took effect. These shipments originated from countries such as the UAE and Turkey, which have not imposed trade restrictions on Russia.

Despite being labelled "toxic" by Russia in 2022, the dollar and euro continue to be in demand among Russians for international travel, small imports, and savings. The U.S. government has threatened penalties for financial institutions that aid Russia in circumventing these sanctions and has imposed sanctions on companies from third countries throughout 2023 and 2024. A significant portion of these cash shipments was declared by a little-known company named Aero-Trade, which has been involved in duty-free shopping services. The surge in cash imports just prior to the invasion suggests that some Russians were seeking protection from potential sanctions.