The Prosecutor General’s Office is backing a proposal to prohibit cash transactions for real estate purchases in Russia. The initiative aims to combat fraud and increase the security of property sales. Svetlana Razvorotneva, Deputy Chairman of the Committee on Construction and Housing and Communal Services, introduced the bill in response to rising instances of real estate fraud.

According to Razvorotneva, fraudulent real estate transactions are a significant problem in Russia. In 2022, over 6,000 cases were recorded, and this number rose to over 8,000 in 2023. The deputy told Izvestia that the damage from these scams amounts to tens of billions of rubles annually and is steadily increasing.

To address this issue, deputies have proposed creating a special law to regulate those involved in real estate transactions. The Prosecutor General’s Office has expressed its support for this proposal.

Real estate market experts suggest that the ban on cash transactions may not be as disruptive as it initially seems. Valery Tumin, director of the Russian and CIS markets at fam Properties, estimates that only 10–15% of real estate transactions currently involve cash. However, these transactions are often associated with disputes and criminal activity, such as banknote substitution or double sales.

Tumin argues that non-cash payment methods offer greater security and traceability. Unlike cash, electronic payments provide a record of the transaction and bank confirmation, which can be used as evidence in case of a dispute. This reduces the risk for both buyers and sellers.