The number of tourists heading to Russia is increasing, as it is considered a destination worth exploring and spending an enjoyable vacation in. There is also a growing reliance on its banks by foreigners due to the flexible procedures that the state has directed to be taken when dealing with opening new bank accounts. Those who resort to opening accounts in Russian banks are not just tourists, as foreign communities reside in Russia to study at universities or invest in some commercial sectors there.
Opening a bank account in Russia is straightforward and does not involve complex procedures. This simplicity is designed to encourage deposits in these banks and to use them as a channel for foreign currency. It’s also worth noting that it’s possible to open an account in Russian banks remotely (online) from some countries before traveling to Russia to reside there.
Why is the demand for foreigners opening bank accounts in Russia increasing?
This is due to the introduction of a new law that simplified the procedures required to open a bank account in one of the Russian banks. As a result, the number of foreign customers in Russian banks has increased. The demand for opening new bank accounts and obtaining MIR cards from Russian banks remains stable. Chinese citizens top the list of those who have opened new accounts in Russian banks, and there is a noticeable Arab interest, particularly from the United Arab Emirates and Saudi Arabia.
Is Russia an investment destination?
Although the Russian economy is not the size of the U.S. or Chinese economy, it is considered one of the top 5 economies globally, ranking behind China, the United States, India, and Japan. It works through planned efforts to surpass the Japanese economy in the coming years. This makes Russia a key player in the market, with the energy and information technology sectors being particularly active and advanced. This makes Russia one of the destinations that can be invested in, and it also makes its banks strong, safe, and trustworthy.
Methods of Payment in Russia
In Russia, you can pay in cash at any store you visit, but it is generally advised to refrain from carrying cash while traveling and to rely on banking payment cards. This advice is also directed to those visiting Europe and other countries for tourism or work. Russia is considered one of the most advanced countries in electronic card payments. Electronic payment systems are widespread nationwide, so citizens do not need to carry cash while strolling and shopping.
Despite the sanctions that affected using MasterCard and Visa cards in Russia, the government responded by introducing the MIR electronic payment card for foreigners. This, along with the simplified banking procedures, is part of the government’s efforts to encourage foreign investment in Russian banks.
The MIR card can be used everywhere: in stores, subways, public transportation, and Russian websites (for example, Rzd, Ozon, Yandex Travel, Aeroflot, S7 Airlines, etc.). Additionally, the MIR card is accepted in other former Soviet republics (such as Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Tajikistan) and in countries that have begun to take it due to the increase in Russian tourists (Turkey, Egypt, Cuba, Venezuela, etc.).
How do you open a bank account as a foreigner in a Russian banks?
Opening a bank account in Russia as a foreigner is straightforward. We will guide you through the steps, providing tips and instructions to help you open an account in one of the Russian banks.
Step 1: Choosing the Right Bank
In the Russian Federation, there are hundreds of large and small banks, and you need to familiarize yourself with the top 5 or 7 banks in Russia and learn about the services they offer, then choose the one that suits you. Among the most prominent Russian banks are:
- Sberbank
- VTB
- Gazprombank
- Promsvyazbank
- Russian Agricultural Bank
Step 2: Securing the Required Documents
Foreigners can open bank accounts in Russia, primarily when residing there or engaging in commercial activities. They can open current accounts or savings accounts. They can open these accounts in rubles, euros, or dollars. They need to secure the following documents:
- A bank-issued application form
- A valid passport
- A valid residence permit
- Proof of residential address
- Preparation of some usual bank fees
As some who need to be better informed may claim, Russian citizenship is optional when opening a bank account. All that is required is legal entry into Russia or a residence permit issued by the competent authorities. Moreover, as mentioned earlier in the article, foreigners who intend to move to Russia can open a bank account by contacting the bank online before leaving their home country.
If you are a foreigner working for a Russian company, you may need a confirmation letter from your company. However, many banks no longer request this requirement after the procedures were updated and simplified by reducing the required documents.
Step 3: Visiting the Bank Branch or Applying Online
Once you have chosen the bank and gathered your documents, you can visit the bank branch in person or apply for an online account, depending on the bank’s policies. Some banks may allow non-residents to open accounts remotely, while others may require a personal visit.
Step 4: Completing the Account Opening Process
During your visit to the bank or the online application process, you must complete account opening forms and submit your documents for verification. If you apply in person, a bank representative will assist you and answer any questions.
Step 5: Activating the account and obtaining banking credentials
Once your account is approved, you must activate it according to the bank’s instructions. This may include online banking access, receiving your debit card, and obtaining additional banking credentials.
A bank account in Russia is essential for any tourist, resident, worker, or university student. Under political authorities’ direction, Russian banks offer all the facilities that make opening a bank account straightforward. You can obtain a bank account before moving to Russia through some procedures that can be done by communicating with the bank online.