How to transfer money from Armenia to Russia and vice versa

How to transfer money from Armenia to Russia and vice versa

Armenia, along with Kyrgyzstan and Kazakhstan, still retains the status of the country – a financial intermediary between Russia and the rest of the world. What are the available ways to transfer money from Armenia to Russia and from Russia to Armenia at the moment?

Money transfers from Armenia to Russia

Many entrepreneurs and freelancers living in Russia have opened an IP in Armenia to work with foreign counterparties, with the prospect of further 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, several transfer methods remain in operation, including bank transfers, the use of payment apps and peer-to-peer (P2P) exchanges.

1. Transfers through two VTBs (for banks under sanctions)

For banks of the Russian Federation under sanctions, there is a method of transfer through VTB Armenia and VTB RF. This method works if the Russian bank has a correspondent account with VTB RF. The process is as follows:

  • The money is transferred from an account in one of the banks of Armenia to the correspondent account of VTB RF in VTB Armenia.

  • Next, VTB RF credits the funds to the account of your bank of the Russian Federation, which is transferred to the recipient’s final account.

This method is suitable for banks under sanctions, but requires careful filling in 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 the transfer through correspondent accounts of Russian banks in Armenia. Most often, Ardshinbank is used for this, which supports interbank transfers in rubles. Translation is carried out as follows:

  • The money is transferred from your account in the 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 through IDpay

IDpay is a payment application that allows idram users to transfer money to cards of Russian banks. To use this method, you need to be verified in idram. The translation process includes the following steps:

  • Registering in idram and linking a card of any bank in Armenia.

  • Selecting the transfer option to the IDpay account and specifying the recipient’s data.

  • The money is transferred from your roubles account in ID Bank or from the linked card of RA Bank.

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 in 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 translates AMD in Armenia, and the second person translates RUB in Russia at a pre-negotiated 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 with strangers. It is important to carefully discuss the exchange rate and amount before the transaction.

5. SWIFT translations

SWIFT transfers from banks in Armenia 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 translation process includes several steps:

  • A selection of banks in Armenia that support SWIFT transfers for non-residents.

  • Issuance of transfer through international correspondent accounts.

However, it is worth considering that SWIFT transfers may take longer, and commissions will be significantly higher than with other methods. Also, banks of the Russian Federation may charge additional fees for accepting currency on USD or EUR accounts.

How to choose the best translation method?

The choice of translation method depends on several factors:

  1. Availability of sanctions: If a Russian bank is under sanctions, the best option is a transfer through VTB Armenia and VTB RF. For banks not under sanctions, it is more convenient to use Ardshinbank.

  2. Speed ​​and simplicity: For simpler and faster translations, IDpay is suitable, but it is not always profitable according to the exchange rate

  3. The size of the commission: 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.

  4. P2P risks: P2P exchanges can be profitable at a rate, 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 made through correspondent accounts in intermediary banks.

The process of transferring RUB through correspondent accounts

  • It is necessary to open a ruble account in a bank of Armenia. Most banks in Armenia accept such transfers, but not all banks work with rubles directly, which may require currency conversion.

  • A bank in Armenia provides details for a transfer through a Russian correspondent bank.

  • The Russian bank must provide these details, including the account number of the Armenian bank to the Russian correspondent bank.

  • After the transfer, the rubles are credited to the account in Armenia and can be converted into the desired currency (for example, AMD (Armenian dram) or USD).

Pluses:

  • High transfer limits (up to 200 million rubles).

  • The possibility of transferring large sums without restrictions of currency legislation.

  • No commission at some banks.

Cons:

  • Difficulties are possible with transfers from banks of the Russian Federation that are under sanctions.

  • More often than not, additional verification of the source of funds is required, especially if the money is transferred to Armenia in large amounts.

2. Translations in AMD from Russia

For those who want to avoid converting rubles in Armenia, there is an option to convert Armenian Drams (AMD) directly. This is possible due to the purchase of AMD on the Moscow Stock Exchange with subsequent transfer to Armenia.

Some Russian banks and brokers allow customers 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 conversion losses and not face problems when transferring through karbovance correspondent accounts.

Benefits of AMD translation:

  • More favorable AMDRUB conversion rate.

  • No problems with banks in Armenia, which may refuse to accept transfers in rubles from sanctioned banks.

Disadvantages:

3. SWIFT translations: international standard

SWIFT transfers are a universal way of sending money between banks around the world, which is suitable for both natural persons (FI) and individual entrepreneurs (IP). Armenia SWIFT is widely used to transfer US Dollars (USD), Euros (EUR) and other international currencies.

Advantages of SWIFT translation:

  • Support for many currencies (USD, EUR, GBP, etc.).

  • The possibility of receiving large sums to accounts in Armenia.

  • Wide network of correspondent banks.

Disadvantages:

  • High transfer fees.

  • There may be delays due to checking compliance with regulations or rules, such as the OFAC SDN list.

  • The need to specify the exact details of the recipient and the correspondent bank to avoid problems with the transfer.

4. Instant translations: convenient and fast services

For those who prefer speed and convenience, there are several instant translation services from Russia to Armenia. These services allow you to transfer money through the cards of Russian banks to the accounts of Armenian banks with minimal loss of time, but sometimes at a less favorable exchange rate.

Popular instant translation services:

  • IDpay – Service that offers instant transfers from Russian bank cards to Armenian bank accounts. It supports translations in AMD with low fees and fast credit.

  • KoronaPei (Golden Crown) – 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 “Svit” cards to “Svit” cards of VTB Bank Armenia. This service works quickly, with a small commission and is suitable for those who want to transfer funds to “Svit” cards.

Advantages of instant translations:

Cons:

5. Transfers through brokerage accounts

Another way to transfer money to Armenia is to use brokerage accounts to buy currencies on the exchange and then transfer funds to an Armenian bank.

How does it work?

  • You need to buy currency (for example, AMD, USD or EUR) through a brokerage account on the 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 sums.

  • Possibility of transfer in several currencies.

Disadvantages:

  • Working with brokers requires opening a brokerage account and certain skills in working with the stock exchange.

  • Some banks in Armenia may require additional documents to confirm the origin of the funds.

6. Transfers via cryptocurrency

With the development of cryptocurrency technologies, cryptocurrency transfers have become another way to send money to Armenia. In this case, funds are transferred in cryptocurrency and then exchanged for fiat money in Armenia through cryptocurrency exchangers.

How does cryptocurrency translation work?

  • You transfer cryptocurrency (e.g. Bitcoin, Ethereum) from your crypto wallet to the recipient’s wallet.

  • The recipient exchanges cryptocurrency for fiat money through local cryptocurrency exchanges or exchanges.

Advantages of cryptocurrency translations:

  • Speed ​​and anonymity of translation.

  • No dependence on banks and commissions for interbank transfers.

Cons:

  • Cryptocurrency exchange rate volatility.

  • There are limited opportunities to use cryptocurrencies in everyday transactions in Armenia.

7. Fees and transfer terms

Each method of translation has its own fees and deadlines:

  • Interbank transfers RUB usually takes 1 to 3 business days, commissions may be absent for some bank combinations.

  • SWIFT translations may take up to 5 working days depending on the number of intermediaries and the scope of the verification.

  • Instant translations usually processed within a few minutes, but with commissions of about 1-3%.

  • Cryptocurrency translations can be instant but require time to exchange and convert to fiat currency.

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