Russian President Vladimir Putin has banned residents from sending money to bank accounts abroad and has halted the repayment of foreign debt, among other measures, in order to counteract sanctions imposed by the West.
The decree issued by the Kremlin on Monday states that “residents are prohibited from granting loans to non-residents in foreign currency” and that they are also “prohibited from depositing foreign currency into their bank accounts outside Russia.” The ban began on Tuesday, March 1.
In an update dated March 1, the Kremlin clarified that this ban applies to “foreign individuals and legal entities that have ties to foreign countries that take hostile actions.” [ou seja, os que introduziram as sanções dos seus países de origem] against Russian individuals and legal entities” The same reasoning applies to natural and legal persons.
The modernization also prohibits the transfer of the ruble (the Russian currency) abroad and the withdrawal of money in foreign currency in the amount of more than 10 thousand dollars.
Thus, such transactions are subject to the approval of the Kremlin, as are transactions in real estate assets and shares on the stock exchange (which have been suspended).
However, these same transactions are allowed if they come from the central bank, the Kremlin, or any other government entity.
Since Tuesday, residents are also prohibited from transferring money without opening a bank account using electronic payment methods provided by foreign payment service providers.
In addition, Putin’s decree states that “residents who export goods, works and services abroad under foreign trade contracts with non-residents must sell 80% of the foreign currency they receive under these contracts.”
In addition to these actions, the Central Bank of Russia issued a decree prohibiting debt bond payments and bond repayments. The blockade began on Monday and will continue until the Russian government announces the end of these measures.
According to the American newspaper, “The Wall Street Journal”, the sanctions that have been imposed historically have never reached the debt, which may surprise investors. In fact, this embargo could, at worst, lead to Russia defaulting or, in a more positive scenario, affect Russia’s future financing with foreign investors, a reputable analyst told the newspaper.
On March 1, the Central Bank also issued a decree prohibiting foreign companies from transferring money out of Russia – that is, companies with subsidiaries in Russia are prohibited from seeing the money that belongs to them.
These measures were imposed in an attempt to control the markets and the ruble – which has deteriorated – after the sanctions imposed by the West. The United States, the European Union and other Western allies – such as Switzerland, which has officially left its neutral position – have excluded some banks from the Swift financial network.
The countries also closed their airspace to Russian aircraft, cut off services, and many companies left their businesses and projects on Russian soil or jointly with Russian companies.
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