An investigation by the independent media outlet Verstka has revealed that Russia imported $29.2 million worth of cash from Rwanda’s Defence Ministry, circumventing Western sanctions on cash imports. The transaction, which took place in January 2024, has raised significant concerns over Russia’s ability to continue evading financial restrictions imposed by the United States and the European Union (EU) following its invasion of Ukraine in 2022.
The United States and the EU introduced a ban on the export of their banknotes to Russia in March 2022, just after Russia launched a full-scale military invasion of Ukraine. Despite these sanctions, Russia has managed to import approximately $2.3 billion in dollar and euro banknotes from countries like Turkey and the United Arab Emirates, which have not imposed similar financial restrictions. This continuous influx of foreign currency undermines the intended impact of the sanctions, and the recent transaction with Rwanda highlights the persistence of such breaches.
According to classified customs data obtained by Verstka, Russia’s state-controlled arms exporter, Rosoboronexport, purchased a shipment of $100 bills from Rwanda on January 23, 2024. This shipment, weighing almost 300 kilograms, raises questions about Rwanda’s role in facilitating Russia’s sanctions evasion. Rwanda, a country that officially condemned Russia’s invasion of Ukraine at the United Nations, appears to be involved in an act that directly contradicts its public stance.
This transaction is part of a broader pattern of sanctions evasion by Russia. Aero-Trade, a Russian company operating duty-free shops at several airports, has been instrumental in importing foreign currencies. From 2023 until earlier this year, Aero-Trade imported significant amounts of dollars and euros, primarily from Turkey and the UAE. Notably, on January 18, 2024, just days before the Rosoboronexport transaction with Rwanda, Aero-Trade registered two large shipments of $20 million and €20 million ($22.14 million).
These revelations come amid increased scrutiny from Western governments regarding institutions that help Russia bypass sanctions. Despite the US threatening penalties in December 2023 for entities involved in such activities, it appears that the Kremlin has managed to continue these operations without facing major obstacles.
The role of Rwanda in this transaction raises critical questions about its engagement with Russia. While the country has condemned Russia’s actions in Ukraine, its Defense Ministry appears to have facilitated the sale of large quantities of US dollar banknotes to a country facing extensive international sanctions. This contradiction invites closer inspection into Rwanda’s actual position and motivations, especially as it enjoys diplomatic and financial ties with both Western countries and Russia.
The breach of sanctions through such transactions poses a broader geopolitical challenge. It illustrates how Russia continues to find loopholes, ensuring the inflow of foreign currencies to sustain its economy despite severe financial penalties imposed by the West. Moreover, the involvement of countries like Rwanda in such deals demonstrates the complex web of relationships and dependencies that Russia can exploit to maintain access to essential resources like hard currency.
In conclusion, the $29.2 million transaction between Rwanda’s Defence Ministry and Russia’s Rosoboronexport adds a troubling layer to the ongoing issue of sanctions evasion. Rwanda’s involvement, despite its official condemnation of Russia’s actions in Ukraine, suggests a disconnect between its public diplomacy and actual dealings with Russia.
