New restrictions on certain transactions with foreign participation
Under a Decree of the President of Russia introducing additional temporary economic measures to ensure the financial stability of Russia[1] dated March 1, 2022, new restrictions were imposed on the issuance of credits and loans in rubles by residents of Russia and the disposal of rights to securities and real estate if such transactions are concluded with:
- Foreign nationals of states that have imposed sanctions on Russia;
- Persons who are under the control of such foreign nationals (regardless of the place of registration or activity);
- Foreign nationals of countries that have not imposed sanctions on the Russian Federation but have acquired after February 22, 2022 securities or real estate from the persons specified in (i) and (ii).
Such transactions can now be completed only with special authorizations from the Government Commission for Control over Foreign Investments in the Russian Federation. Transactions with the above-mentioned securities in on-exchange trading may be completed with permits issued by the Central Bank of Russia in agreement with the Russian Ministry of Finance.
The decree also bans the export of cash foreign currency or monetary instruments in foreign currency over USD 10,000 from March 2 (at the exchange rate of the Central Bank of Russia on the date of export).
The decree expressly provides for the possibility of transferring foreign currency to correspondent accounts in non-resident banks for transactions that are not subject to the above restrictions.
If you have any questions or you would like to discuss this further, please feel free to email Julia Talagaeva.
Truly yours,
[1] http://kremlin.ru/events/president/news/67886