Russia sanctions: Despite U.S sanctions Russia is earning in Dollars; here’s how they are doing it

Though the US and the European Union slapped sanctions on Russia after Moscow invaded Ukraine for its alleged attempt to join the North Atlantic Treaty Organization, there have been many holes in the sanctions and Russia has been able to bypass it by hook or by crook. Reuters has reported that Moscow has received shipments of billions of dollars and euros, despite a ban on currency exports. It has also said that Russia has received $2.3 billion worth of dollar and euro notes since March 2022, after its army crossed the border and entered Ukraine.

Dollars come from UAE, Turkey

According to customs data cited by the news outlet, the dollar and euro shipments came from close allies of Russia, including the United Arab Emirates and Turkey. These are the countries where Russia has exploited banking loopholes to keep doing business despite sanctions.

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Russia de-dollarizes trade

The shipments of foreign currency also come as Russia has moved to de-dollarize its economy. Interestingly, Russian President Vladimir Putin has urged the nation to reduce its use of “toxic” currencies from the West. Moscow has entered into a treaty with many countries for doing import-export on the currency of respective countries instead of the dollar. Despite this, Russia is dependent on the use of the dollar, because the greenback currency is and held among the world’s central banks and it is widely used in international trade.

Will Russia be pushed into recession?

Reacting strongly to the situation, the US has warned Moscow of another round of economic sanctions. Talking to Business Insider, a UC Berkeley economist said that lost access to the dollar could weaken Moscow’s money stream and push the country into a severe recession at a time when it is fighting an internecine war with its neighbor.

FAQs:

Which are the countries from where Russia gets dollars despite economic sanctions?
The dollar and euro shipments come from close allies of Russia, including the United Arab Emirates and Turkey. These are the countries where Russia has exploited banking loopholes to keep doing business despite sanctions.Will Russia be pushed into a serious recession?
Talking to Business Insider, a UC Berkeley economist said that lost access to the dollar could weaken Moscow’s money stream and push the country into a severe recession at a time when it is fighting an internecine war with its neighbor.