Sanctions push Russians to seek money transfers

Moscow’s invasion of Ukraine has rightly drawn criticism across the world and caused multiple sanctions against Russia, with a threefold increase in interest to transfer money to secure payments either at home or overseas.

The sanctions might affect remittances and increase the use of cryptocurrencies in Russia.

These sanctions span from tight controls placed on stock market trading to the removal of Russia from SWIFT, and global brands like McDonald’s shutting down some or all of their operations in the country. They affect every level of Russian society.

Conducting a traffic flow survey on its Russia page, payment comparison site MoneyTransfers.com found there was a 285% increase in views ahead of and during the aftermath of the invasion on February 24.

“It is unsurprising that we have seen a spike in interest in money transfers to Russia due to the war. The Russian economy has been hit by huge instability,” said Jonathan Merry, CEO of MoneyTransfers.com.

“Citizens – who are already seeing queues outside shops due to panic buying, restrictions on their spending abilities abroad, and a devaluation in their currency – will fear instability in the banking sector and any investments they may have,” Merry added.