Russians rush to open foreign bank accounts amid economic uncertainty
Russian residents are increasingly opening bank accounts abroad, with numbers rising sharply in recent years. In 2024 alone, nearly 700,000 tax residents set up foreign accounts, continuing a steady upward trend. The shift reflects broader changes in global financial behaviour among both individuals and businesses. The Federal Tax Service (FNS) reported 1.825 million foreign accounts held by 539,100 Russian tax residents in 2023. By 2024, the number of self-reported accounts had grown by roughly 31% annually, with no sign of residents closing existing ones. Instead, the trend points to a consistent rise in new openings.
Over 2 million Russian tax residents now hold accounts in countries that share financial data automatically. This marks a 12% increase from the previous year. Many of these accounts are concentrated in neutral or 'friendly' nations, though specific destinations remain unclear in recent data. Historically, places like Liechtenstein, Cyprus, Guernsey, the Cayman Islands, and Singapore have been popular—though Liechtenstein has faced sanctions scrutiny over Russian-linked funds since the Ukraine invasion.
The FNS does not exchange financial information with many 'unfriendly' countries. This policy may influence where Russian residents choose to open accounts, as they seek jurisdictions with fewer reporting restrictions. The steady growth in foreign accounts suggests Russian residents are adapting to a shifting economic landscape. With more than 2 million accounts now in countries sharing financial data, the trend highlights a broader reliance on offshore banking. The FNS continues to monitor these developments as the number of foreign-held accounts climbs.
