Starting September 1, Raiffeisenbank has introduced a 50% commission for incoming dollar-denominated transfers and announced that the commission will be a minimum of $1,000 but not exceed the amount received. The maximum amount is $10,000.
At the current rate, you will have to pay from 95 thousand to 950 thousand rubles.
The new conditions apply to all incoming transfers of citizens and small businesses, companies and individual entrepreneurs.
“Due to changing market conditions, the bank is forced to limit the number of incoming transfers in US dollars. Raiffeisen, we recommend customers use other payment methods.
Which banks started the commission
The other day, OTP Bank did the same. As of September 19, it increased the commission on foreign currency transfers. From now on, the bank will collect 1% of the transfer amount for transactions made in dollars and euros using the SWIFT system. (minimum 40, maximum 300 $/€) through online services. If the transaction is made at the bank branch, it will be 2% of the commission amount. (minimum 40, maximum 400 $/€). This is 3-40 thousand rubles.
As socialbites.ca learned, Avangard, Credit Europe Bank, Asia-Pacific Bank and Loko Bank have introduced commissions for SWIFT transfers from major banks in foreign currency.
At Avangard and Credit Europe Bank, the fee is 1% of the transfer amount in dollars and euros. At Loko Bank – 3% of the transaction amount. “Asia-Pacific Bank” will charge a 20% fee for transfers in dollars. In total, the commission operates in 13 large Russian banks.
The fee for outgoing SWIFT transfers has been implemented by the country’s 49 credit institutions. A commission of 1% of the amount is collected by Solid Bank, Bank of China, Cifra Bank. Fees of more than 1% of the transfer amount are applicable at Russian Standard, Renaissance Credit, Raiffeisenbank and others – 38 major Russian banks in total.
Reasons for the appearance of commissions in banks
Ekaterina Semerikova, a leading researcher at the Skolkovo School of Management Blockchain and Fintech Lab, said the commission initiated by Raiffeisen is considered protective.
“Probably the bank wants to avoid transfers in dollars and euros. It can also be a good way to earn money from currency transfers. The bank needs to minimize risks when dealing with foreign transfers.
“As far as I know, such large commissions on transfers were only seen in Raiffeisen,” he said.
Sinara Bank Retail Business Development Director Anna Volkova stated that the introduction of non-cash money receiving or sending fees is determined by banks’ infrastructure limitations (cost of transactions), balance sheet structure, and ability to hold money. in foreign correspondent accounts.
“The cost of operations may increase due to increased enforcement pressure. Due to the narrowing of the supply of such services in the market and the increase in risks, some banks may also aim to increase their margins.
Speaking specifically about Raiffeisenbank, the main holding Austrian Raiffeisen Bank International (RBI) is trying to put pressure on Eurocentrobank (ECB), a source from one of the largest banks in the Russian Federation told Gazeta.ru:
“After the announcement of the sanctions, Raiffeisenbank remained the only practical financial corridor for Russian companies to the Western world. The ECB is trying to close this corridor.”
According to him, the RBI informed at the beginning of the year about its plans to phase out activities in Russia. But in reality the banking group is in no hurry to leave the Russian market – therefore it receives large dividends. According to the bank’s statements, more than 50% (EUR 3.8 billion) of the group’s profits in 2022 fell to the subsidiary in Russia.
Raiffeisenbank’s net income was 2.1 billion euros last year; This figure is four times higher than the previous year. The profit of the Ukrainian “daughter” of the Austrian conglomerate last year fell by half to 65 million euros. Therefore, the banker believes that the RBI is now taking targeted measures to simulate a smooth exit from Russia for Western observers. Increasing commissions is one of them.
How to send money abroad?
People will have to look for workarounds for foreign currency transfers after major banks impose high fees on such transactions. Timur Aitov, Chairman of the Financial Security Commission of the Council of the Russian Chamber of Commerce and Industry, explained to socialbites.ca five ways to send dollars and euros abroad.
Method 1. Cheaper SWIFT transfer
Vladislav Antonov, a financial analyst at BitRiver, advises paying attention to banks that charge minimum fees for SWIFT transfers. According to him commissions from zero to five percent are the average value in Russia.
For example, in Solid Bank, Realist Bank, Royal Credit Bank, Sea Bank, commissions of 0.11-0.2% of the transaction amount are valid.
To send a transfer abroad using the SWIFT system, you need to select the appropriate section in your bank’s application, specify the name and address of the recipient, the name and address of the bank, the individual account number (IBAN). and the BIC or code of the bank to which the money was sent.
Many large Russian banks have been disconnected from SWIFT, including Sberbank, VTB, Rosselkhozbank, Moscow Credit Bank, Otkritie, Promsvyazbank, Novikombank, Rossiya, Rosbank, Alfa-Bank, Tinkoff Bank.
“Money transfer via SWIFT will be possible if the bank is not subject to sanctions. The transfer amount should not exceed 1 million dollars. No one can guarantee that the SWIFT transfer will be completed quickly and accurately.
Some foreign banks may withdraw or even reject bank transfers from Russia. At the same time, banks are constantly increasing their foreign currency transfer commissions,” Aitov said.
Method 2. Foreign Visa or Mastercard
Russians can issue a foreign bank card belonging to the international payment systems Visa or Mastercard. This can be done in Kazakhstan, Uzbekistan and some other CIS countries friendly to Russia. You will have to fly there for several weeks, and a plane ticket, for example, to Almaty will cost about 30 thousand rubles round trip.
“You can open an account in Belarusian or Kazakh banks in rubles and US dollars and continue to calmly pay your bills in foreign currency, paying a small commission.
Similarly, you can buy dollars and euros from abroad with cards issued by banks of friendly countries,” said PRUE Associate Professor of World Financial Markets and Fintech Division. GV Plekhanov Denis Perepelitsa.
Aitov added that some services offer to open a foreign card remotely while in Russia, but the cost of the service is approximately comparable to the price of a trip.
You can top up the Kazakhstan bank card directly from the accounts of some Russian banks (for example, Post Bank), via SWIFT transfer or the Zolotaya Korona payment system.
Method 3. Payment systems
Using the Zolotaya Corona payment system, you can transfer money to 13 countries including CIS, Moldova, Vietnam, Israel, Korea, Turkey and China.
The Contact payment system makes transfers to 31 countries, including the USA, UK, Turkey, Thailand, China and other countries.
Money can only be sent in rubles, after which the conversion takes place.
Since the Russian Unistream payment system is subject to US sanctions, you need to check whether the receiving bank accepts payments. The list of Unistream destinations includes 12 countries including CIS, Greece and Cyprus, Moldova and Serbia. A number of Kazakh, Armenian and Uzbek banks stopped accept payment from this operator.
You can send money transfer via the website, mobile application or acceptance point using payment systems. The commission and conversion rate depend on the country from which the money is sent and the conditions of the partners there.
Method 4. Cryptocurrencies
The main loophole for Russians, of course, remains transfers using cryptocurrencies through the applications of crypto exchanges, a source at one of the largest banks in the Russian Federation noted. However, many crypto exchanges now restrict P2P transfers (“person-to-person”) for Russians.
Especially on August 26, Binance prohibited Customers in Russia transact in any currency except rubles. However, the source said that this method will remain valid on other lesser-known platforms as well. For example at Bybit, KuCoin, OKX, Huobi, Paxful.
Method 5. Export of cash from the Russian Federation
Finally, you can physically take dollars and euros abroad.
Currently, at the request of the Central Bank of the Russian Federation, it is possible to withdraw from Russia an amount of 10,000 US dollars or equivalent euros per capita. Withdrawals of up to 10,000 US dollars or equivalent euros are allowed from foreign currency accounts opened before March 9, 2022 at national banks. You cannot withdraw any more cash.
The future of dollar and euro transfers
Antonov believes that the problem of transferring foreign currency arose after the start of the special operation, that many Russians, including displaced persons and freelancers, have already found ways of working for themselves. He does not foresee a decrease in foreign currency transfers in the face of high commissions by banks.
But the source of socialbites.ca in one of the largest Russian banks does not agree with him. He predicted a 10-30 percent decrease in Russian dollar and euro transfers in the near future.
Sovcombank chief analyst Natalia Vashchelyuk suggested that it is possible that part of the transfer market is occupied by Russian banks, which do not face sanctions restrictions on money transfer.
Nor did he ignore the growth in the use of cryptocurrencies.
“With the reduction of the infrastructure for payments in unfriendly currencies, the infrastructure for friendly currencies (Turkish lira, Chinese yuan, UAE dirham) is also expanding. Also – for ruble transfers abroad, especially to neighboring countries. This trend will continue. Volkova said that over the past year and a half, operations related to cryptocurrency and various payment transfer services have also increased significantly.
The smooth replacement of the euro and the dollar with other currencies (rouble, currencies of friendly countries of the former USSR (in settlements with them), as well as yuan, Turkish lira, dirham, etc.) will take place. As much as the representative of Tsifra Bank.