back to banknotes
Sergey Belov, the Deputy Governor of the Central Bank overseeing cash circulation, told Izvestia that ten-ruble and five-ruble notes have become rare. If these notes return to circulation, their lifespan could be extended thanks to new production technologies.
Belov noted that the Central Bank has not ordered a ten-ruble note from Goznak since 2013. In the early years, banknotes were widely used but soon fell out of favor and were replaced by coins. Although coins cost more to mint, they are tougher and longer-lasting.
“Now technologies have advanced. For instance, banknotes can be varnished, which could raise their service life by about 30 percent. The varnishing method has been tested, and there is full confidence in it, so it will be used in future work,” he explained.
He also mentioned that rising cost pressures on production since 2009 have supported a return to paper notes. With ten-ruble coins proving expensive to print, continuing paper notes becomes more economical.
“There is also discussion about resuming the printing of five-ruble notes, which stopped being ordered from Goznak after 1998. These notes remain in circulation but are exceedingly rare,” he added.
Belov observed that small-denomination coins tend to end up in citizens’ piggy banks and do not re-enter circulation. Retailers, pharmacies, and gas stations argued that metal is heavy and must be counted, stored, and transported, while light banknotes are more convenient for everyday use.
Belov stressed that already minted coins will stay in circulation and will not be exchanged. He noted that they are set to be replaced in 2025, at year-end, when planned to issue ten-ruble notes following the 1997 model. Five-ruble notes are also slated for production using the 1997 design.
Modeled after 1997
The five-ruble banknote, according to information published by the Central Bank, entered circulation in 1998. It measures 137 × 61 mm, smaller than most other notes.
“The note is printed on high-quality light green cotton paper. It contains violet, red, and light green fibers, and a vertical security thread visible when held to light. Local watermarks are placed near the margins on both sides of the note.”
The note is dedicated to Veliky Novgorod. The obverse features the Millennium of Russia monument set against the backdrop of the Hagia Sophia Cathedral, while the reverse shows a section of the Novgorod Kremlin wall.
The Veliky Novgorod administration praised the possible return of the five-ruble banknotes.
“Novgorod is considered a cradle of the Russian state. It is one of the oldest cities and historic capitals, so it matters for residents across the country to know where their roots lie and to view the most important shrines of our history. The Millennium of Russia monument, opened to mark the 1000th anniversary of the Russian state, and the Hagia Sophia Cathedral, Russia’s oldest Orthodox stone church, hold special significance.”
The ten-ruble note, introduced in 1998, measures 150 × 65 mm.
“It is printed on high-quality light yellow cotton paper with light green, red, and purple fibers, and a vertical security thread visible when held to light. Local watermarks are present near the margins on both sides.” This description comes from the Central Bank’s website.
The note honors Krasnoyarsk. The obverse shows a bridge between the Yenisei and the city chapel, while the reverse features the Krasnoyarsk Hydroelectric Power Station dam.
Risks
According to the Central Bank, coins constitute about 91 percent of currency in circulation, with their total weight accounting for only 0.8 percent of the money supply. Among banknotes, the combined share of those in 5, 10, 50, and 200 ruble denominations is less than 0.5 percent.
Vladimir Rozhankovsky, CEO of Trade123, commented to socialbites.ca about the risks tied to returning to paper notes.
“If coin usage declines and ten-ruble notes are introduced, it could create problems. There is no room to print money beyond what is already in circulation. Emissions can cause inflation, which is well understood,” he warned.
He suggested a partial withdrawal of coins and replacement with notes could be feasible, though it would require an expensive and time-consuming reconfiguration of equipment.
“Ultimately, the emission is risky for the economy. Vending machines and vehicles would need major modifications, a costly undertaking,” Rozhankovsky warned.
He added that vending machines and cars increasingly do not accept five- and two-ruble coins. The focus shifts to ten-ruble coins, and a full reconfiguration could cost several billion rubles. Losing such currency across Russia is an unaffordable luxury in the current climate.