Why Russia Needs Dollars: Secret Deliveries of $70+ Million

Despite public statements about de-dollarization, Russia continues to secretly import millions of US dollars(?)

I came across an article that said that Russia, despite its claims of de-dollarization and criticism of the US dollar, imported over $70 million in cash into the country in 2024. Intrigued by the topic, I decided to figure out what was behind such contradictions and how it related to major Russian companies such as Rosoboronexport.

According to the agency Reuters, Since 2022, Russia has received about 2.27 billion dollars and euros, mainly from countries such as Turkey, the UAE and Rwanda, which have not imposed restrictions on currency exports to Russia.

The state arms exporter plays a key role in these operations. Rosoboronexportwho imported US$29.21 million in $100 bills from Rwanda into the country in January 2024.

Also the company Aero Tradewhich is engaged in duty-free trade, imported two batches: 20 million dollars and 20 million euros, which is equivalent to 22.14 million US dollars.

In total, Russia imported $71.35 million in cash through these companies, despite official statements about de-dollarization and increased sanctions.

A little background:

Rosoboronexport — a Russian state-owned company engaged in the export and import of military and dual-use products, services and technologies. It is a key participant in the international trade in arms and military equipment on behalf of the state.

Rosoboronexport supplies weapons, military equipment and defense services to foreign customers. The company works with more than 70 countries worldwide.

Sanctions:

Since 2014, Rosoboronexport has been under sanctions from the United States and the European Union in connection with the Crimea story and the conflict in Ukraine. Despite the sanctions, the company continues to successfully sell weapons and conclude deals with various countries, including India, China, Venezuela and others.

In 2022 and 2023 Rosoboronexport demonstrated stable results in the export of weapons and military equipment, despite the sanctions. In 2022, the volume of contracts amounted to more than $ 12 billion, and by the end of 2023 The company's order book reached a record $55 billionwhich became the largest indicator in the company's history. The main partners in military-technical cooperation were countries in Africa, Asia and the Middle East. Despite the sanctions, the company continues to successfully conclude contracts, including for the latest models of military equipment.

If a company is engaged in the sale of weapons and the buyer wants to pay in cash (either bags of cash or a truck with pallets of dollars), do you think the company has grounds for refusing to accept the payment?

She is not being offered candy wrappers, but international currency. This currency has not been cancelled yet.

With a portfolio of orders of 55 billion dollars, talking about some 70 million is ridiculous.

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