Economy: Russia Quietly Amasses $2.3 Billion in Cash Under the Nose of the West

In a tense geopolitical context, the Russian economy demonstrates persistent dependence on the dollar. Despite export bans on currencies, 2.3 billion dollars in greenbacks have entered Russian territory.

In the shadow of sanctions, Russia secretly accumulates 2.3 billion $

While Russia recently made headlines following the devaluation of the Libyan dinar, which Libyan authorities attribute to a wave of counterfeit bills of presumed Russian origin, the country finds itself once again at the center of media attention.

Customs data analyzed by Reuters demonstrate the sophistication of Russian strategies to maintain its financial flows. 

Indeed, 2.3 billion dollars in cash have been transported to Moscow. Turkey and the United Arab Emirates, not participating in the sanctions, play a key role in this circumvention. These nations serve as bridges for currency transportation, exploiting fissures in the global financial system.

More intriguingly, the origin of more than half of the bills remains unidentified in the customs data covering the period from March 2022 to December 2023.

The persistent appeal of the dollar in the Russian economy

Paradoxically, while the Kremlin promotes the use of the Chinese yuan, the Russian population remains attached to the dollar and the euro. Dmitry Polevoy, financial expert at Astra Asset Management, highlights this reality: “For individuals, the dollar remains a reliable currency.”

This stubborn preference for Western currencies reveals a gap between official strategy and the daily practices of Russians. The influx of foreign cash responds to a strong domestic demand, particularly for travel and savings.

Russia’s economic diversification efforts extend beyond traditional currencies. The recent legalization of Bitcoin mining by President Putin opens new prospects for circumventing financial obstacles.

Additionally, Russia assumed the presidency of the UN Security Council in July. Foreign Minister Sergey Lavrov seized this opportunity to advocate for a “multipolar world” and efforts “to eliminate the injustices at the heart of the global economy”.  

This diplomatic stance aligns with the objectives of the BRICS group, of which Russia is a member, aiming to reduce the dominance of the US dollar in the global economy.