Banks raise fees on foreign transfers; how to send money abroad

Starting September 1, Raiffeisenbank introduced a 50% commission on incoming transfers in US dollars. The minimum fee is set at $1,000, with a cap equal to the received amount, and a maximum of $10,000. At today’s exchange rate, that means a payment of between 95 thousand and 950 thousand rubles. The new terms apply to all incoming transfers for individuals, small businesses, companies, and individual entrepreneurs.

Due to shifting market conditions, the bank is limiting the number of incoming USD transfers. Raiffeisenbank recommends customers consider alternative payment methods.

Which banks added commissions

Recently OTP Bank followed suit. As of September 19, it raised commissions on foreign currency transfers. Transfers in dollars and euros via SWIFT incur a 1% fee, with a minimum of 40 and a maximum of 300 USD/EUR when done online. If the transfer is performed at a branch, the rate rises to 2% with a minimum of 40 and a maximum of 400 USD/EUR, totaling three to forty thousand rubles depending on the instance.

According to socialbites.ca, Avangard, Credit Europe Bank, Asia-Pacific Bank, and Loko Bank have also introduced fees for SWIFT transfers from major banks in foreign currency. At Avangard and Credit Europe Bank the fee is 1% of the transfer amount in USD or EUR. Loko Bank charges 3%. Asia-Pacific Bank imposes a 20% fee for USD transfers. In total, fees now apply across many large Russian banks.

Outgoing SWIFT transfers show a similar pattern. Sixty-nine percent of credit institutions in the country levy a 1% commission, with Solid Bank, Bank of China, and Cifra Bank cited as examples. Higher rates are reported at Russian Standard, Renaissance Credit, Raiffeisenbank, and other large banks, with overall volumes rising across about 38 major banks nationwide.

Reasons for new commissions

Ekaterina Semerikova of the Skolkovo School of Management Blockchain and Fintech Lab notes that the Raiffeisen move is protective in nature. She suggests banks may want to curb transfers in dollars and euros and to better manage currency risk, while also creating additional revenue from transfers. Another observer noted that such high commissions on cross-border transfers have not been common, except in Raiffeisen’s case.

Anna Volkova, Retail Business Development Director at Sinara Bank, explains that non-cash transfer fees reflect infrastructure costs, balance sheet structure, and the ability to hold money in foreign accounts. She adds that stronger enforcement and market tightening could push some banks to widen margins as services shrink.

Regarding Raiffeisenbank, industry insiders point to the Austrian parent, Raiffeisen Bank International (RBI), and its relationship with Eurocenter Bank. A source told Gazeta.ru that the ECB may be tightening the corridor for Western currency flows. RBI reportedly signaled plans to scale back Russia-focused activity earlier in the year, yet remained active due to ongoing profits from Russian subsidiaries. This behavior is interpreted by some as a calculated step to ease a broader withdrawal over time, with rising commissions seen as a lever.

RBI’s 2022 results showed substantial profits from its Russian arm, challenging the narrative of a swift exit. Analysts describe the increased fees as part of a broader strategy to balance risk with continued operations in the region.

Alternatives for sending money abroad

As large banks raise foreign currency transfer costs, people are looking for alternatives. Timur Aitov, chair of the Financial Security Commission of the Russian Chamber of Commerce and Industry, outlines five approaches for sending dollars and euros abroad.

Method 1. Cheaper SWIFT transfers

Vladislav Antonov, a financial analyst at BitRiver, recommends banks with lower SWIFT fees. Typical ranges include zero to five percent, with real examples such as Solid Bank, Realist Bank, Royal Credit Bank, and Sea Bank offering 0.11% to 0.2% fees in many cases. When using SWIFT, select the recipient’s name and address, the bank’s details, the account (IBAN), and the BIC or bank code. Many large banks have departed from SWIFT due to sanctions, such as Sberbank, VTB, Rosselkhozbank, and several others, making it essential to choose non-sanctioned institutions. Transfers are generally limited to amounts up to 1 million USD, and guarantee of speed remains uncertain. Some foreign banks may withdraw or reject transfers from Russia, while fees on foreign currency transfers continue to rise as sanctions persist.

Method 2. Foreign Visa or Mastercard

Russians can obtain a card issued by Visa or Mastercard in nearby friendly jurisdictions such as Kazakhstan or Belarus. A trip there might be required, with travel costs estimated around 30 thousand rubles round trip. An account in a Belarusian or Kazakh bank can be opened in rubles and foreign currency, allowing payments abroad with modest fees. Some experts note that remote opening of foreign cards is possible, though it may resemble the cost of travel.

Method 3. Payment systems

Systems like Zolotaya Korona offer transfers to several countries, including those in the CIS, Moldova, Vietnam, Israel, Korea, and Turkey. The Contact system supports transfers to many destinations including the USA, UK, and China, with ruble payments converted on arrival. Unistream, affected by US sanctions, requires verification of recipient bank acceptance. Transfer possibilities depend on country and partner arrangements, and can be initiated online, via mobile apps, or at acceptance points.

Method 4. Cryptocurrencies

Cryptocurrency transfers through exchanges remain a possible option, though several platforms have tightened P2P transfers for Russian users. Major platforms like Binance recently restricted transactions in currencies other than the ruble for some users, while others like Bybit, KuCoin, OKX, Huobi, and Paxful may still provide alternatives in certain jurisdictions.

Method 5. Cash export from Russia

Cash withdrawal limits are currently set by the Central Bank. Per capita limits exist for cash withdrawals of up to 10,000 USD or equivalent euros, with some older foreign currency accounts still permitting withdrawals under previous rules. Higher cash withdrawals are not allowed under current policies.

The outlook for dollar and euro transfers

Analysts suggest the transfer problem arose after the start of broader sanctions and ongoing market adjustments. Some expect continued high fees as banks adjust risk and margins. Others anticipate a gradual shift toward alternatives, including currencies from partner nations and the use of new payment rails. Market watchers also note rising activity in cryptocurrency-based transfers and related services as the landscape evolves.

In summary, the shift away from traditional cross-border transfers is shaping a gradual transition toward broader use of friendly currencies, neighboring market currencies, and new digital rails for international payments.