Russia’s cross-border payment system has undergone fundamental changes in recent years. As access to international banking networks narrowed due to sanctions, the country has focused on building domestic alternatives and strengthening ties with friendly economies. For businesses, this means operating under a more complex environment where compliance, currency conversion, and payment routing require careful planning.
The Central Bank of the Russian Federation (CBR) oversees all payment and currency operations. Its primary goal is to maintain stability in the financial system while ensuring that international settlements remain possible under new geopolitical conditions. The Law on Currency Regulation and Currency Control forms the foundation of this system, establishing how residents and non-residents can conduct foreign currency transactions.
Following international sanctions, several Russian banks were disconnected from the SWIFT network, significantly affecting cross-border settlements in USD and EUR. As a result, companies have shifted to alternative channels such as the SPFS (System for Transfer of Financial Messages) — Russia’s domestic equivalent of SWIFT. SPFS connects local banks and several foreign institutions in Asia, the Middle East, and the Eurasian Economic Union (EAEU), allowing continued international communication for payment messaging.
Currency control remains a key feature of Russia’s payment environment. Exporters are required to repatriate foreign currency earnings to Russian accounts within a set timeframe, generally 120 days from the date of shipment. These funds can then be converted to rubles or held in foreign currency accounts, depending on business needs. Importers must provide complete documentation — contracts, invoices, and customs declarations — to justify outbound transfers. All operations are subject to verification by authorized banks and must match the payment purpose codes specified by the CBR.
The volatility of the ruble (RUB) and ongoing restrictions on foreign currency availability present challenges for both importers and exporters. Transactions in “unfriendly” currencies such as USD, EUR, or GBP may face delays or rejections due to intermediary bank restrictions. To mitigate these issues, many Russian companies now settle payments in alternative currencies such as Chinese yuan (CNY), Turkish lira (TRY), or United Arab Emirates dirham (AED). The yuan, in particular, has become the dominant settlement currency for trade with Asia.
Another development is the expansion of Russia’s MIR payment system. Initially created for domestic card transactions, MIR now supports international use in a limited number of countries, primarily within the EAEU and some Asian states. Combined with local e-wallet systems and regional bank partnerships, MIR helps maintain consumer-level payment connectivity despite reduced access to global card networks like Visa and Mastercard.
For corporate payments, banks operating under no or limited sanctions play a vital role. These include financial institutions with correspondent accounts in neutral or partner countries. Businesses often structure trade flows through intermediaries in jurisdictions that maintain open banking relationships with Russia, allowing settlements to proceed in third-country currencies. However, such operations must still comply with both Russian currency law and the partner country’s AML requirements.
Digital finance and fintech solutions are also evolving to support cross-border payments. Russian companies increasingly use blockchain-based systems and cryptocurrency settlements for international trade, especially in pilot projects approved by the government. The CBR and Ministry of Finance are developing a digital ruble that could become a new instrument for international transactions, providing traceability and reducing dependency on foreign systems.
Compliance has become more demanding. Banks are required to perform enhanced due diligence on every foreign transaction to ensure that no sanctioned entities are involved. Businesses must report all foreign currency operations to the Federal Tax Service (FNS) and maintain detailed supporting documentation. Failure to comply can result in administrative fines or account restrictions.
To handle cross-border payments effectively in Russia’s current financial environment, companies should:
– Work exclusively with banks that maintain stable foreign correspondent relationships.
– Diversify settlement currencies, prioritizing CNY, AED, and RUB-based contracts.
– Maintain complete documentation for every transaction and purpose code.
– Use SPFS or regional payment systems instead of SWIFT when applicable.
– Monitor updates from the CBR and FNS on currency control regulations.
While the environment for cross-border payments in Russia has become more complex, it continues to function within a new framework of regional cooperation and technological innovation. The transition toward alternative payment systems and non-dollar settlements has allowed many businesses to remain active in global trade, albeit through new channels.
The long-term outlook depends on expanding international partnerships and developing digital currency infrastructure. For now, companies that stay compliant, flexible, and informed can maintain continuity in their cross-border operations even under significant external constraints.