Additional economic support measures

4 March 2022, Friday

Russian President Vladimir Putin signed a decree on additional temporary measures to ensure the country's financial stability. The text of the document is available on the Kremlin website.

In particular, from March 2, Russia introduces a special procedure for transactions for foreign persons associated with states that commit unfriendly actions against the Russian Federation and its citizens. The new measures concern operations to provide such foreign persons with ruble credits and loans, as well as transactions entailing "the emergence of ownership of securities and real estate."

It is clarified that such operations "can be carried out (performed) on the basis of permits issued by the government commission for the control of foreign investment in the Russian Federation." If necessary, these permits may contain conditions for the execution of transactions.

At the same time, transactions for the purchase of securities can be carried out by such persons at organized auctions on the basis of permits issued by the Central Bank in agreement with the Ministry of Finance of the Russian Federation and containing certain conditions.

In addition, the decree will also apply to transactions with foreigners from any other states, if we are talking about shares or real estate acquired by them after February 22, 2022 from representatives of countries that commit unfriendly actions.

Operations with currency

Based on the decisions of the same government commission, residents of the Russian Federation will be able to transfer currency to foreign accounts. On Monday, a presidential decree was published on the application of special economic measures in connection with the unfriendly actions of the United States and countries that joined them. He, among other things, established a ban on Russian residents to credit foreign currency to bank accounts outside the country, as well as to provide foreign currency loans to non-residents. The decision has been in effect since March 1.

The new document corrects these measures, also allowing such transactions to be made with the permission of a government commission. The government was instructed to approve the procedure for issuing permits necessary for these transactions within five days.

It is also noted that credit institutions have the right to transfer funds in foreign currency to correspondent accounts in non-resident banks, subject to the restrictions stipulated by the decree.

In addition, the document introduces a ban on the export of cash foreign currency from Russia in the amount of more than $10,000.

The document comes into force from the day of its official publication.

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