In a surprising twist of events, last year saw the world’s leading banks making an extraordinary play on the ruble, Russia’s beleaguered currency. The escalating conflict between Russia and Ukraine triggered a Western exodus from Russia but simultaneously created a lucrative niche for savvy bankers.

According to data sourced from Vali Analytics, the top 100 banks raked in an impressive $6 billion from trading the ruble, a figure that triples the average annual ruble-trading revenue of about $2 billion over the past three years.

Masterfully navigating the geopolitical landscape and sanctions, Western banking giants including Goldman Sachs, Citigroup, and JPMorgan Chase devised a strategy that stayed within the bounds of international law. These banks partnered with lesser-known peers located in countries on good terms with Russia, like Kazakhstan and Armenia.

These banks from friendly nations were spared from the trade restrictions that followed Ukraine’s invasion, which gave them unique access to Russia’s dollar market. Here, the American Greenback was selling at a much lower price compared to offshore rates.

Armed with their intermediaries, the Wall Street banks could purchase these low-cost dollars for a fee and then sell them at higher rates to companies making a hasty exit from Russia. Many firms were desperate to secure greenbacks, regardless of the price, as they already faced profit and asset losses upon leaving Russia.

Interestingly, none of these financial maneuvers violated any international sanctions, nor has any institution faced accusations of misconduct. In a way, this strategy provided essential liquidity for firms making a swift departure from Russia.

However, insiders mentioned that a few Wall Street firms were reluctant to partake in the strategy. The banks involved in the ruble trade, as well as those that chose to abstain, remained tight-lipped on their positions.

Despite the spread shrinking since the war’s first year, the trade continues. The on-shore and off-shore ruble rates have begun to converge, while Russian President Vladimir Putin is making it increasingly challenging for foreign companies to withdraw from the country. Yet, the ruble’s pricing discrepancies remain large enough to continue to provide Wall Street with lucrative trading opportunities.

Recently, the ruble has seen substantial declines, particularly following the Wagner uprising in June, which led to Russians scrambling for alternative currencies. As of Monday morning, the ruble was trading at 93.86 against the US dollar. This story serves as a fascinating case study of how geopolitical unrest can open up unexpected windfalls in the world of finance.