How to transfer money from Armenia to Russia and vice versa
Armenia, along with Kyrgyzstan and Kazakhstan, still retains the status of a country – a financial intermediary between Russia and the rest of the world. What available methods of transferring money from Armenia to Russia and from Russia to Armenia exist at the moment?
Money transfers from Armenia to Russia
Many entrepreneurs and freelancers living in Russia have opened individual entrepreneurs in Armenia to work with foreign counterparties, with the prospect of subsequently sending funds to the Russian Federation. As of October 2024, transferring money from banks in Armenia (RA) to banks in Russia (RF) has become more difficult due to sanctions restrictions and changes in the banking system. However, despite this, there remain several transfer methods that work, including bank transfers, the use of payment applications and peer-to-peer (P2P) exchanges.
1. Transfers through two VTB (for banks under sanctions)
For banks in the Russian Federation that are under sanctions, there is a transfer method through VTB Armenia and VTB Russia. This method works if a Russian bank has a correspondent account with VTB of the Russian Federation. The process is as follows:
Money is transferred from an account in one of the banks in Armenia to a correspondent account of VTB RF in VTB Armenia.
Next, VTB RF credits the funds to your bank account in the Russian Federation, which transfers them to the final account of the recipient.
This method is suitable for banks under sanctions, but requires careful filling of data and checking the relevance of correspondent accounts.
2. Transfers through Ardshinbank for banks not subject to sanctions
If the Russian bank is not under sanctions, you can use a transfer through correspondent accounts of Russian banks in Armenia. Most often, Ardshinbank is used for this, which supports interbank transfers in rubles. The translation is carried out as follows:
The money is transferred from your account in a bank of Armenia to the correspondent account of the bank in the Russian Federation in Ardshinbank.
The Bank of the Russian Federation credits funds to your account in Russia.
This method works faster than through two VTBs and is suitable for banks that are not under sanctions.
3. Transfers via IDpay
IDpay is a payment application that allows idram users to transfer money to cards of Russian banks. To use this method, you must pass verification in the idram application. The translation process includes the following steps:
Registration in idram and linking a card of any bank in Armenia.
Selecting the transfer option to an IDpay account in the Russian Federation and indicating the recipient’s details.
Money is transferred from your ruble account in ID Bank or from a linked RA Bank card.
This method is convenient for customers who do not want to deal with bank transfers. However, it is worth considering that the AMDRUB exchange rate with IDpay may be less favorable than in other services.
4. Peer-to-peer (P2P) exchanges
P2P exchanges are another popular way to transfer money between Armenia and Russia. The essence of the method is that one person transfers AMD in Armenia, and the second – RUB in Russia, at a pre-agreed rate. These exchanges usually take place in immigrant chat rooms and are based on mutual trust.
Despite the simplicity and flexibility of P2P exchanges, they carry certain risks, especially if the transaction is concluded with strangers. It is important to carefully negotiate the exchange rate and amount before making a transaction.
5. SWIFT transfers
SWIFT transfers from Armenian banks to Russia remain possible, but only for a limited number of banks that are not under sanctions. For example, you can transfer money to banks such as Raiffeisen or Unicredit through their international branches.
The SWIFT transfer process includes several steps:
Choosing a bank in Armenia that supports SWIFT transfers for non-residents.
Processing transfers through international correspondent accounts.
However, it is worth considering that SWIFT transfers may take longer, and fees will be significantly higher than with other methods. Also, Russian banks may charge additional fees for accepting currency into accounts in USD or EUR.
How to choose the optimal translation method?
The choice of translation method depends on several factors:
Presence of sanctions: If a Russian bank is under sanctions, the best option is a transfer through VTB Armenia and VTB Russia. For banks not under sanctions, it is more convenient to use Ardshinbank.
Speed and simplicity: For simpler and faster transfers, IDpay is suitable, but it is not always favorable at the rate.
Commission amount: Commissions in different banks in Armenia vary, and depending on the amount of the transfer, it makes sense to choose banks with minimal commission costs.
Risks of P2P: P2P exchanges can offer favorable rates, but they are not recommended for large amounts or transactions with strangers.
Methods of money transfers from Russia to Armenia
1. Interbank transfers in rubles (RUB)
Interbank transfers in Russian rubles from Russia to Armenia are one of the most convenient and frequently used options. Such transfers are carried out through correspondent accounts in intermediary banks.
Process of transferring RUB through correspondent accounts
It is necessary to open a ruble account in a bank in Armenia. Most banks in Armenia accept such transfers, but not all banks deal with rubles directly, which may require currency conversion.
The bank in Armenia provides details for the transfer through a Russian correspondent bank.
In the Russian bank you need to indicate these details, including the account number of the Armenian bank in the Russian correspondent bank.
After the transfer, the rubles are credited to your account in Armenia, and you can convert them into the desired currency (for example, AMD (Armenian dram) or USD).
Pros:
High transfer limits (up to 200 million rubles).
Possibility of transferring large amounts without restrictions of currency legislation.
No commission for some banks.
Cons:
There may be difficulties when transferring from Russian banks under sanctions.
Often, additional verification of the source of funds is required, especially if the money is transferred to Armenia in large amounts.
2. Transfers to AMD from Russia
For those who want to avoid converting rubles in Armenia, there is an option to transfer Armenian Drams (AMD) directly. This is possible through the purchase of AMD on the Moscow Exchange with subsequent transfer to Armenia.
Some Russian banks and brokers provide clients with the opportunity to buy Armenian drams on the Moscow Exchange and transfer them to an Armenian bank. This method is suitable for those who want to avoid losses on conversion and not encounter problems when transferring through ruble correspondent accounts.
Benefits of AMD Transfer:
More favorable AMDRUB conversion rate.
No problems with Armenian banks, which may refuse to accept transfers in rubles from sanctioned banks.
Flaws:
3. SWIFT transfers: international standard
SWIFT transfers are a universal way to send money between banks around the world, which is suitable for both individuals (individuals) and individual entrepreneurs (IP). In Armenia, SWIFT is widely used for transferring US dollars (USD), euros (EUR) and other international currencies.
Advantages of SWIFT transfer:
Supports multiple currencies (USD, EUR, GBP, etc.).
Possibility of receiving large sums to accounts in Armenia.
Wide network of correspondent banks.
Flaws:
High transfer fees.
Possible delays due to compliance checks or rules, such as the OFAC SDN list (US sanctions list).
The need to indicate exact details of the recipient and correspondent bank to avoid problems with the transfer.
4. Instant transfers: convenient and fast services
For those who prefer speed and convenience, there are several instant transfer services from Russia to Armenia. These services allow you to transfer money through Russian bank cards to Armenian bank accounts with minimal loss of time, but sometimes at a less favorable rate.
Popular instant transfer services:
IDpay — a service offering instant transfers from Russian bank cards to Armenian bank accounts. It supports transfers to AMD with low fees and fast deposits.
KoronaPay (Golden Crown) is a popular money transfer service that supports transfers to Armenia. Some banks in Armenia, such as ID Bank, Amio and Evoca, accept transfers through this service.
Avosend— a service for transferring RUB from Russian Mir cards to Mir cards of VTB Armenia Bank. This service works quickly, with a small commission and is suitable for those who want to transfer funds to Mir cards.
Pros of instant transfers:
Cons:
5. Transfers through brokerage accounts
Another way to transfer money to Armenia is to use brokerage accounts to purchase currencies on the exchange and then transfer the funds to an Armenian bank.
How does this work?
You need to buy a currency (for example, AMD, USD or EUR) through a brokerage account on an exchange.
Next, transfer funds from the brokerage account to a bank account in Armenia.
Advantages of using brokers:
Favorable currency exchange rates, especially for large amounts.
Possibility of transferring to several currencies.
Flaws:
To work with brokers, you need to open a brokerage account and certain skills in working with the stock exchange.
Some Armenian banks may require additional documents to confirm the origin of funds.
6. Transfers via cryptocurrency
With the development of cryptocurrency technologies, transfers through cryptocurrency have become another way to send funds to Armenia. In this case, funds are transferred in cryptocurrency and then exchanged for fiat money in Armenia through cryptocurrency exchangers.
How does transfer via cryptocurrency work?
You transfer cryptocurrency (for example, Bitcoin, Ethereum) from your crypto wallet to the recipient's wallet.
The recipient exchanges cryptocurrency for fiat money through local cryptocurrency exchangers or exchanges.
Pros of cryptocurrency transfers:
Speed and anonymity of translation.
No dependence on banks and commissions for interbank transfers.
Cons:
Cryptocurrency exchange rate volatility.
Limited opportunities for using cryptocurrencies in everyday transactions in Armenia.
7. Commissions and terms of transfer
Each transfer method has its own fees and deadlines:
Interbank transfers RUB usually take 1 to 3 business days, fees may be waived for some bank combinations.
SWIFT transfers may take up to 5 working days depending on the number of intermediaries and the volume of verification.
Instant transfers usually processed within minutes, but with fees of around 1-3%.
Cryptocurrency transfers can be instant, but require time to exchange and convert to fiat currency.
