A new decree signed by V. Putin to respond to sanctions
The decree of 28.02.2022 “On special economic measures against the USA and other countries affiliated with them in connection with Western sanctions imposed on Russia”. According to the decree, the possibility of transferring foreign currency abroad will be significantly limited.
The new measures include the following:
- Within 3 business days starting from 28.02.2022 Russian residents are obliged to sell 80 % of foreign currency received from foreign trade contracts and sell 80 % of foreign currency credited from January 1, 2022 under the contracts for export of goods, providing services and works to foreign customers, and transfer of intellectual property rights abroad.
- Effective 28 February 2022, Russian residents involved in cross-border commercial activity are obliged to sell 80% of the foreign currency received from foreign counterparties under the contracts mentioned above within 3 (three) business days. The regulation on the mandatory sale of foreign currency by residents is to be issued by Russia’s Central Bank.
The following transactions by Russian residents are banned starting 1 March, 2022:
- Making and transferring loans to non-residents (both legal entities and individuals) in foreign currency
- Transferring funds in foreign currency to the bank accounts opened by the banks abroad
- Transferring funds to foreign banks without opening a bank account using electronic means of payment provided by foreign providers of payment services
- Individuals are allowed to open accounts remotely if the change of the bank is required