By Russia has imported more than $29 million in U.S. dollar and euro banknotes from Rwanda this year, despite Western sanctions prohibiting such cash imports, according to a report by the investigative outlet Vyorstka. The revelation, based on confidential customs data, highlights potential loopholes in the sanctions regime imposed on Russia following its invasion of Ukraine.
Vyorstka’s investigation found that on January 23, Russia’s state-controlled arms exporter Rosoboronexport imported $29.21 million worth of $100 bills from Rwanda’s Defense Ministry. This transaction occurred nearly two years after the United States and the European Union banned the export of their banknotes to Russia in March 2022.
The report also detailed two additional shipments registered on January 18 by Aero-Trade, a company providing duty-free shopping services for flights and airports. These shipments were valued at $20 million and 20 million euros ($22.14 million) respectively. Vyorstka noted that these were the last reported imports of what Russia publicly refers to as “toxic” currencies until at least April 30.
Since the imposition of sanctions, an estimated $2.27 billion in dollars and euros has been sent to Russia from countries that have not imposed such restrictions, including Turkey and the United Arab Emirates. The Vyorstka report suggests that Rwanda, which was among the UN members condemning Russia’s invasion of Ukraine, has now joined this list of countries facilitating currency imports to Russia.
Reuters, in a separate investigation, identified Aero-Trade as the only company that declared foreign currency imports for 2022 and 2023, reporting a total of $1.5 billion in banknotes across 73 shipments. Each shipment was valued at $20 million in either dollars or euros. However, the exact source and destination of this cash could not be determined.
In response to previous reports, Aero-Trade had stated that it was “not involved in the supply of hard currency to Russia.” The company’s role in these transactions and its relationship with Russian financial institutions remain unclear.
This latest revelation raises questions about the effectiveness of Western sanctions and the strategies employed by Russia to circumvent them. It also highlights the complex web of international financial transactions that continue to occur despite efforts to isolate Russia economically.
As international observers and policymakers digest this information, it may prompt renewed discussions on strengthening sanctions enforcement and closing potential loopholes in the global financial system. The involvement of Rwanda, a country that officially condemned Russia’s actions in Ukraine, adds a layer of complexity to the geopolitical implications of these currency imports.
The Russian government and financial institutions have not yet commented on Vyorstka’s report. As the situation develops, it is likely to draw attention from international financial regulators and diplomatic circles, potentially leading to further scrutiny of Russia’s economic activities amid ongoing sanctions.
