New restrictions on the export of ruble cash are primarily aimed at tightening control over the cross-border movement of funds and may affect most heavily small businesses that rely on cash settlements with foreign partners. Antonina Levashenko, Head of the International Best Practices Analysis Department at the Gaidar Institute, told about this situation to RTVI.
From September 29, Russian citizens are not allowed to take more than Rb1 mn in cash out of the country to EAEU nations, Azerbaijan, Tajikistan, and Uzbekistan. However, it remains possible to transport larger amounts provided certain conditions are met: specifically, an individual must depart from designated international airports and present documentation certifying the fact that the funds were withdrawn from a Russian bank account.
According to Antonina Levashenko, the restrictions could target individuals transporting large amounts of cash, including funds ostensibly for personal use, to purchase goods abroad. Such payment methods allow foreign counterparties to mitigate the risk of secondary sanctions, while simultaneously reducing transaction transparency for tax and currency control authorities.
“The primary objective here is to enhance oversight of the movement of funds. As the authorities cannot see exactly whom large sums of cash are being transferred to, it is difficult to distinguish between legitimate transactions and cases involving tax evasion or money laundering. However, a total ban on taking large sums out of the country is not being introduced: provided the funds’ origin is documented, they may be taken out the country in accordance with established procedures,” noted Antonina Levashenko.
The new rules are likely to have the greatest impact on small companies and entrepreneurs who use cash for transactions with foreign suppliers, including in shuttle trade. Additional difficulties will also arise for individuals planning large purchases in cash abroad, such as a car or real estate.
The restrictions will also affect migrant workers with substantial savings; however, they retain the option to transfer funds via banks. The decree itself specifically regulates the export of cash rubles and does not apply to bank transfers.
Antonina Levashenko notes that the new rules extend restrictions that were already in place for businesses. However, the threshold for individuals had been significantly higher: until September, it stood at the ruble equivalent of $100,000. Now, a unified limit of Rb1 mn has been established.
Thus, it is not a question of a total ban on taking cash out of the country, but rather a shift toward stricter controls on large sums and the verification of their origin.