Recently, Russian media outlets have published information that some Armenian banks have suspended cash Russian ruble transactions, including their deposit into bank accounts. It is noted that non-cash settlements continue to be carried out under the previous conditions. In this regard, Armenian News-NEWS.am has contacted the Union of Banks of Armenia (UBA), trying to understand the reasons for such restrictions.

UBA informed us that the restriction on cash Russian ruble transactions by Armenia’s commercial banks is related to restrictions on accepting cash rubles in Russia. UBA added that the restrictions apply to financial organizations operating outside Russia, including those operating in the Eurasian Economic Union (EAEU).

Russian media outlets added that banks in Belarus, Kazakhstan, Kyrgyzstan (EAEU countries) have also restricted the deposit of Russian rubles into accounts.

The Central Bank of Armenia had earlier stated that it had not made any decisions on restrictions on accepting cash Russian rubles, and commercial banks make such decisions independently. This indicates that the decision of Armenia’s banks was a response to the processes taking place in Russia, and not a unilateral measure against the Russian national currency.

Economist Tatul Manaseryan had earlier noted in an interview with Armenian News-NEWS.am that such processes could be included in the framework of oversight in the currency market. He had recalled that such measures are usually taken during periods of risk in the currency market, in case of a risk of instability, money laundering, or terrorist funding.

Banks have already notified customers of changes in the conditions for transactions in Russian rubles, introducing various restrictions, from a temporary suspension of cash acceptance to the establishment of commission fees for depositing cash rubles into current accounts.

The changes are related to the surplus of Russian cash rubles, the maintenance of which is expensive for banks.