Russian Users Bypass Sanctions on Steam Through Intermediaries

Since the beginning of the full-scale war in Ukraine and the introduction of international sanctions, Russian video game users have managed to spend around $546 million each year on the Steam platform. Of this amount, more than $31 million is funneled into intermediary services that assist in bypassing the sanctions. This revelation comes from a detailed investigation by Anastasia Rashchenko for NGL.media.

The international sanctions, aimed at restricting direct transactions with the Russian Federation, were intended to isolate Russian video game users. However, despite these efforts, a separate market segment quickly emerged in Russia that utilizes third-party services and alternative mechanisms to maintain financial flows into the global gaming industry.

Steam, the undisputed leader among online platforms for computer games, boasts over 130 million active users each month. This platform serves as the primary global online store, accounting for approximately 75% of all digital sales of computer games. However, following the introduction of international financial sanctions, Russian users lost the ability to purchase new games, although access to their accounts and previously purchased games remained intact.

Issues began to surface in late February 2022 when one of the most anticipated games of the year, Elden Ring, was released. Russian users found that their usual method of purchasing games on Steam had ceased to function. During attempts to complete a purchase, the system either rejected the payment or displayed messages regarding restrictions.

These restrictions applied not only to specific releases but also to the platform as a whole. While access to content remained, the fundamental function of purchasing new games became non-operational. Players began sharing tips on forums about how to top up their wallets, change their account regions, or make purchases through other countries and intermediaries. Initially, these were isolated comments, but they eventually developed into comprehensive solutions.

One of the basic schemes that emerged early on involved changing the account region via Kazakhstan. However, using a VPN proved insufficient, as Steam only changes the region after a real payment is made in the currency of another country. To facilitate this, Russians utilized the QIWI payment system: they topped up their accounts in rubles, converted them into Kazakhstani tenge, and made payments through Kazakhstan, which led Steam to perceive them as Kazakhs.

After several months, QIWI simplified the process by adding the ability for direct payments to Steam without the need to manually create a tenge wallet. However, in February 2024, QIWI lost its banking license, forcing users to seek new options.

During this same period, a method emerged that did not require the use of banks at all. In the world of video games, there are virtual items that gamers refer to as 'skins.' These items do not affect the gameplay itself but serve as status markers, akin to designer clothing or collectible sneakers. Some of these skins can cost thousands, while the rarest can fetch hundreds of thousands of dollars.

Based on this, a new scheme was developed: Russian users buy skins for rubles on third-party marketplaces and then resell them within Steam for the platform's internal currency. This allows money to enter a virtual wallet without involving banks, conversions, or accounts from other countries. Such payments do not fall under the sanctions imposed against Russians.

To accurately describe Steam's reaction to the Russian invasion of Ukraine, it is crucial to note that the platform, which controls 75% of the global computer gaming market, has not made any public statements regarding the war or the sanctions. Unlike many international companies, Steam has not issued official statements condemning the aggression or announced its exit from the Russian market. Instead, the response has primarily revolved around the technical implementation of restrictions dictated by the sanctions regime and the functioning of payment infrastructure.

On the official Steam forum as early as March 2022, a moderator explained that certain payment mechanisms remained available for Russian users, including through PayPal. However, just a few days later, PayPal officially ceased its operations in Russia. After this, Steam remained accessible to Russians but without operational payment methods, and this gap was filled by intermediaries.

Following the introduction of restrictions, a separate market for intermediaries emerged, taking on the responsibility of payments and providing Russians access to games. This includes third-party platforms that sell digital goods: games, keys, account top-ups, and access services. Specialized marketplaces such as Plati.Market or FunPay are most commonly used.

According to web analytics, FunPay receives around 28 million visits per month, while Plati.Market sees about 9 million. FunPay positions itself as a player-to-player exchange, focusing primarily on services and in-game values, while Plati.Market serves as a classic automated marketplace where ready-made digital products, such as game activation keys, are sold. Together, they cover different segments of the same market: from direct access to games to services that allow users to bypass restrictions.

These platforms are frequently mentioned in discussions as the primary entry points for users. Here, a Russian user can purchase virtually everything they previously did directly on Steam, but through a third party. These sites operate like standard marketplaces: they feature catalogs, search functions, seller ratings, and reviews. The difference is that they sell not physical goods but access to games or the platform's internal currency.

To verify how these schemes work in practice, I decided to personally experience the journey of a user attempting to buy a game in Russia. For this experiment, I chose the marketplace FunPay. Unlike another popular service, Plati.Market, where payment often requires entering credit card details directly into payment forms on the site, and where the option to contact the seller often fails due to ignored messages, FunPay allows users to communicate directly with sellers via chat. Since I was reluctant to provide my card details, I opted to try this platform to understand how the sanction circumvention system operates.