Russia limits cash, gold exports under Putin’s order

2026-03-26 - 01:50

Cash demand surged despite digitisation push, as the banking system recorded roughly US$13.2 billion net outflow in January. (Wiki pic) MOSCOW: Russian President Vladimir Putin signed decrees on Wednesday restricting cash and gold exports as part of a broader campaign to combat the shadow economy and curb capital flight, Anadolu Ajansi reported. Under one decree, carrying ruble cash across the border of Russia to the Eurasian Economic Union (EAEU) will be prohibited in the amount equivalent to more than US$100,000 at the exchange rate of the Bank of Russia from April 1, with certain exceptions. The other decree bans the export of gold bars weighing more than 100 grams from Russia starting May 1. It includes some exceptions and does not apply to commercial banks. Both decrees were published on the government portal. Despite official efforts to digitise, cash demand has increased, with a net cash outflow of roughly US$13.2 billion from the banking system in January 2026 alone, driven by businesses moving into the shadow sector to avoid rising value-added tax (VAT) and taxes. Russian deputy finance minister Alexei Moiseev said gold is increasingly being used as a substitute for foreign exchange in illicit transactions, fuelling capital flight and money-laundering activities. “Effective May 1, 2026, a ban is established on the export from the Russian Federation by individuals, legal entities and individual entrepreneurs of refined gold in bars with a total weight exceeding 100 grams,” the document states. Exceptions for cash apply only when it is exported through designated international airports, provided the exporter has bank statements or other documents confirming the withdrawal of funds from bank accounts as determined by the government. For gold bars, exceptions are made when the export of refined gold in bars is carried out through air checkpoints across the Russian state border at the international airports of Vnukovo, Sheremetyevo, Domodedovo and Knevichi, provided there is a permit document from the Federal Assay Chamber. Exceptions are also made for cases where the export of gold in bars is carried out by legal entities and individual entrepreneurs to non-EAEU states.