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