About $2.3 billion and euros have been transferred to Russia since the US and EU banned cash exports to the country in March 2022 in response to Moscow's military campaign in Ukraine, Reuters reported on August 12.
Citing previously unreported customs data, the news agency said Russia has successfully circumvented cash sanctions, showing that dollars and euros remain useful tools for trade and tourism.
Customs data obtained by Reuters showed that some of the cash was shipped to Russia from countries that do not impose trade restrictions on Moscow, such as the UAE and Türkiye. The country of origin of the rest of the cash was not listed in the data.
Last December, Washington threatened to sanction financial institutions that help Russia evade sanctions and has imposed sanctions on companies from third countries throughout 2023 and 2024.
China's yuan has overtaken the greenback to become the most traded foreign currency in Moscow, although significant settlement problems remain.
A corner of the Kremlin with Spasskaya Tower and St. Basil's Cathedral in Moscow, Russia. Photo: Sputnik
Many Russians still want to have foreign currency in cash for travel abroad, as well as for small imports and domestic savings, said Dmitry Polevoy, chief investment officer at Astra Asset Management in Russia. “For individuals, the dollar remains a reliable currency,” Polevoy said.
The Central Bank of Russia (CBR) and the US Treasury Department's Office of Foreign Assets Control (OFAC), which handles sanctions, did not respond to requests for comment.
Russia began labeling the US dollar and euro as “toxic” currencies in 2022 as comprehensive sanctions cut off Moscow’s access to the global financial system, making payments and trade difficult. About $300 billion of the Russian Central Bank’s foreign exchange reserves in Europe have been frozen.
A European Commission (EC) spokesman said they could not comment on individual cases of sanctions. The spokesman also said the EU would cooperate with third countries where it suspected sanctions were being evaded.
Reuters said the customs records it had access to covered the period from March 2022 to December 2023, and it had no access to more recent data.
The documents show a surge in cash imports just before the Russia-Ukraine conflict erupted. Between November 2021 and February 2022, $18.9 billion in cash and euros entered Russia, compared to just $17 million in the previous four months.
Daniel Pickard, head of the international trade and national security practice at US law firm Buchanan Ingersoll & Rooney, said the surge in pre-conflict transactions suggested some Russians were likely looking to hedge their bets in case sanctions were imposed.
Soon after the war in Ukraine began, the Russian Central Bank quickly restricted foreign currency withdrawals by individuals to support the ruble. Data shows that only $98 million in cash and euros were withdrawn from Russia from February 2022 to the end of 2023. In contrast, foreign inflows were much higher.
According to Ukrainska Pravda, an earlier investigation by journalists revealed that drones, computer processors, GPS devices, memory cards and other dual-use goods continue to be supplied to Russia via Georgia, despite Tbilisi authorities claiming to have closed loopholes to circumvent Western sanctions.
In recent months, the West has increasingly focused on closing loopholes that allow Russia to continue to “evade” sanctions.
Minh Duc (According to Reuters, Ukrainska Pravda)
Source: https://www.nguoiduatin.vn/nga-thanh-cong-ne-trung-phat-van-nhap-khau-hang-ty-usd-euro-tien-mat-204240812205835975.htm
Comment (0)