Putin Signs Act on Implementation of Special Economic Measures in Response to Imposed Sanctions

The president of Russia, Vladimir Putin, has signed the act on the implementation of special economic measures against the USA and the states that joined them, in response to the sanctions implemented against Russia due to the war in Ukraine.

The act envisages that the participants in external economic activities need to sell 80% of the foreign exchange funds received from abroad since January 1, 2022.

The rule also pertains to the funds that are already accumulated. They need to be sold within three days.

Residents are banned from foreign exchange operations which involve the provision of foreign exchange to the benefit of non-residents based on loan agreements, and residents will no longer be able to pay foreign currency to their accounts opened in banks and organizations abroad or pay money without opening a banking account using electronic means of payment which are available to foreign providers of services in the sphere of payment transactions.

Furthermore, it is envisaged that public shareholders companies will be able to buy their placed shares until December 31, 2022 (except for the purchase of the placed shares to the end of reducing their overall number), under certain conditions.

It is noted that the measures are implemented to the end of protecting the national interests of Russia.

Vladimir Putin

act on the implementation of special economic measures against the USA

sanctions

foreign exchange operations

placed shares