Russian President Vladimir Putin signed a decree on special measures in response to economic sanctions from Western countries. The text of the document is published on site Kremlin.
The decisions were made “in connection with the unfriendly and contrary to international law actions of the United States of America and foreign states and international organizations that have joined them, related to the introduction of restrictive measures against citizens of the Russian Federation and Russian legal entities, in order to protect the national interests of the Russian Federation.”
Response
Under the new decree, from February 28, Russian exporters are required to sell 80 percent of foreign exchange earnings. Earlier, a similar decision was announced by the Russian Ministry of Finance. “For residents participating in foreign economic activity to carry out the mandatory sale of foreign currency in the amount of 80 percent of the amount of foreign currency credited starting from January 1, 2022 to their accounts in authorized banks on the basis of foreign trade contracts concluded with non-residents and providing for the transfer of goods to non-residents, the provision of services to non-residents, performance of work for non-residents, transfer to non-residents of the results of intellectual activity, including exclusive rights to them,” the document says. The procedure for the sale of foreign currency by exporters will be established by the Central Bank.
80percent of foreign exchange earnings
Russian exporters are obliged to sell from February 28
Residents are prohibited from “carrying out foreign exchange transactions related to the provision by residents in favor of non-residents of foreign currency under loan agreements”, and “acceptance by residents of foreign currency to their accounts (deposits) opened with banks located outside the territory of the Russian Federation and other organizations of the financial market, and also making money transfers without opening a bank account using electronic means of payment provided by foreign payment service providers.”
This means that it will be impossible to credit foreign currency to your accounts and deposits in foreign banks and brokers. As the source said The Bell in the financial and economic bloc of the government, the ban is imposed on both Russian companies and citizens. The ban comes into effect on March 1.
In addition, money transfers without opening an account using electronic means of payment provided by foreign suppliers are prohibited. The document also states that public joint-stock companies will be able to buy back shares until December 31 only under certain conditions.
Banks will be able to open accounts for individuals without personal presence during interbank transfers. “The transfer of funds is carried out by a credit institution after obtaining the written consent of the individual client to transfer the specified information to the credit institution and use it for the purpose of concluding a bank account (deposit) agreement with the individual client. The method and form of transfer of the specified information are determined by credit institutions independently, ”the decree says.
Non-standard situation
On Monday, February 28, at the opening of trading, the dollar exchange rate reached 90 rubles, the euro exchange rate – 101.9 rubles. At the beginning of trading, the boundaries of the price corridor for both currencies were set with an upper limit of 90 and 101.1925 rubles, respectively. On the same day, the Board of Directors of the Bank of Russia decided to raise the key rate to 20 percent per annum. The regulator attributed the increase to a fundamental change in external conditions.
Explaining this decision, the head of the Central Bank, Elvira Nabiullina, stressed that the conditions for the Russian economy have changed dramatically, and a wide range of instruments will be required to maintain financial stability.
We will make further decisions on monetary policy based on changes in the actual situation and risk assessment. First of all, in terms of external conditions
The head of the Central Bank stressed that monetary policy will be aimed at maintaining financial and price stability. According to Nabiullina, the Russian financial system and economy “are now facing a completely non-standard situation.”
Earlier, the Central Bank decided to cancel trading on the Moscow Exchange on February 28 “due to the current situation.” On the evening of February 28, the Central Bank introduced new restrictions for the Moscow Exchange. Morning and evening sessions will not be held from March 1 to March 5. On Tuesday, March 1, trading in the currency and money markets will open at 10:00 and will last until 19:00. The regulator will assess the expediency of opening trading in other markets depending on the development of the situation.
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