How Russians navigate international payments after SWIFT ban
4 Min Read
Russians adapt to SWIFT sanctions through cryptocurrency, QR codes, and intermediaries to move money across borders four years after restrictions began.
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People walk under the rain through Red Square with the St. Basil's Cathedral, left, and the Spasskaya Tower in the background in Moscow, Friday, Oct 17, 2025 (AP)
Nearly four years after Western sanctions cut Russia off from the global financial system, Russian citizens and businesses have developed an intricate network of alternative payment methods to move money across borders, Bloomberg reported on Friday.
Russians have adapted to life without SWIFT, the international financial messaging system, by using technology-based workarounds that range from cryptocurrency to QR codes.
The transformation came after major Russian banks were disconnected from SWIFT following the start of the Russia-Ukraine war in 2022, and payment giants Visa and Mastercard suspended operations in the country.
Natalia, a consultant featured in the Bloomberg article, demonstrates that in order to transfer money to Germany, she first sends rubles from Russia's T-Bank to Armenia using only a phone number, and then wires the funds in euros to her European account. The process is quick but costly, since she loses approximately 10% of the transfer's value via double currency conversion.
Established payment networks replace traditional banking
Oleg Vyugin, a former top central bank official, explains to Bloomberg that Russians now use various schemes, including cryptocurrency, while payment agents actively advertise their ability to handle transactions of any size.
The latest complications emerged when EU sanctions last month froze Russian accounts with online bank Revolut. The measures targeted Russians without permanent EU or Swiss residency, further restricting their financial options.
Domestic solutions fill the void
Across Russia’s population of 140 million, the locally developed Mir card system now dominates. The Bank of Russia's Faster Payments System (SBP) enables transfers to several countries, primarily former Soviet republics.
Russian banking apps, including the country's largest lender Sberbank, allow money transfers using phone numbers or card details to dozens of nations, including China, India, Serbia, South Africa, and Turkey.
Card-to-card payments often route through fintech intermediaries in Kazakhstan or Armenia, creating legal alternatives to SWIFT. Central banks in both countries confirmed that no local laws restrict money transfers between their financial institutions and Russia.
Business adaptations, costs
For small and medium-sized businesses, intermediaries remain essential. Dmitry, who imports from China, tells Bloomberg that he uses a payment agent who built a chain with multiple intermediaries "to remove any trace of Russia." Transaction fees that peaked at 7% in 2024 have now dropped to around 1.5%, but transfers take approximately five days.
Payment agent Ivan, based in Serbia, noted to Bloomberg that a significant portion of transactions now flow through cryptocurrency, which Serbia recognizes as a legal digital asset.
Larger corporations often use direct transactions, particularly with China, as VTB Shanghai, the Chinese branch of Russia's second-largest bank, continues operating despite sanctions.
Technology enables tourism, retail
QR code technology has simplified payments in some contexts. For example, Uzbekistan hotels allow customers to pay by scanning SBP-linked codes without intermediaries. While in Turkey, a popular Russian tourist destination, several banks launched QR-code payment services in March, though service disruptions have occurred.
Despite these technological advances, most Russian travelers still prefer carrying dollar or euro cash or using credit cards issued by third countries.
Cryptocurrency's growing role
Among alternative payment methods, cryptocurrency cards offer another option. The A7A5 token, developed by cross-border payments company A7, reportedly processed 7.5 trillion rubles ($92.5 billion) in transactions during the first half of 2025.
