The volume of money transfers from Russia to Kazakhstan decreased for the first time in a year

In April 2023, the minimum amount of funds was transferred from RUSSIA to Kazakhstan for the year. Many Russians have already transferred all the moneywho wanted to, experts say.Kazakhstan also tightened rules for migrants and investors

The volume of money transfers from Russia to Kazakhstan in April 2023 was 44% less than a year ago, follows from the statistics of the NATIONAL BANK of Kazakhstan.

In total, in April 2023, 10.2 billion tenge (1.7 billion rubles) was transferred from Russia to Kazakhstan - the minimum amount of funds since April 2022. The April figure also decreased compared to March 2023 (12.2 billion tenge, or 2.1 billion rubles) - by 16%. Also in April 2023, for the first time in a year, the number of transactions also fell - by 27% compared to April 2022, and by 15.4% compared to March 2023, to 52.1 thousand. However, Russia is still the leader among others countries by the share of transfers to Kazakhstan - 39% of the total. it is ahead of SOUTH KOREA (10.3%), the usa (10.2%), Uzbekistan (10.1%), Turkey (6.2%) and other countries.

The data includes transfers through the money transfer systems Zolotaya Korona, Contact, Unistream and others. The decline in volumes occurred for the first time in a year since the surge in such transfers in April 2022.

The largest monthly indicator of money transfers from Russia to Kazakhstan was recorded in June 2022, when 66.8 billion tenge was transferred. In total, in 2022, 357 billion tenge, or about $775.4 million, was sent from Russia to Kazakhstan. This is a record since at least 2014 - statistics are available from this period. The DOLLAR figure is 6.8 times the volume of transfers sent to this country in 2021.

In early 2022, Russia launched a special military operation in Ukraine . This led to the introduction by Western countries of large-scale sanctions against the Russian financial system, the withdrawal of Visa and Mastercard cards from Russia, as well as the emigration of some Russian citizens. Due to financial restrictions, Russians have had difficulty accessing their money abroad. Transfers through payment systems allow you to receive money abroad in cash or on cards of local banks.

Why the volume of transfers has decreased

The decrease in indicators is due both to the fact that fixed assets have already been withdrawn for the year, and to regulatory measures, says Pen & Paper lawyer Roman Kuzmin. “Russian citizens were able to partially resolve their household needs, ranging from bank card payments on a trip abroad or paying for subscriptions to foreign services and ending with financial requests for investment,” the lawyer says.

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Kuzmin refers to regulatory measures as the requirement of the Kazakhstan Stock Exchange (KASE) to segregate the accounts of Russian and Belarusian citizens at the level of the central depository, which was adopted in April 2023. This could also affect the reduction of the financial flow to Kazakhstan. “On the one hand, segregation itself does not entail any direct negative consequences. On the other hand, it is obvious that separate accounting potentially implies the possibility of separate restrictions and everything else separate and unpleasant in the legal sense, which, obviously, cannot but worry Russian investors, ”explains the lawyer.

Egor Krivosheya, HEAD of the blockchain and fintech laboratory at the Skolkovo School of Management, names several factors. “Firstly, some Russians could have moved from Kazakhstan to other countries, including returning to Russia. Secondly, the integration between the financial systems of Russia and Kazakhstan has become worse: the conditions for transfers have become more complicated, and some banks have tightened the rules for confirming the status of a resident / non-resident and, accordingly, the possibility of obtaining financial services. Thirdly, some Russians could transfer money in a larger amount during 2022 due to shocks in the economy, but in 2023 they could change their financial strategy due to the stabilization of a number of indicators or the adaptation of their strategy, ”Krivosheya listed. He believes that it is too early to talk about a trend reversal.

In January 2023, Kazakhstan tightened the rules for the stay of Russians in the country and canceled the so-called vizaran - the ability to extend the allowed period of stay of 90 days by leaving the country for at least a day. From January 27, 2023, Russians can stay in Kazakhstan for no more than 90 days within 180 days. For a longer stay, it is necessary to have grounds and apply for a residence permit or a temporary residence permit.