Putin signs decree on special economic measures regarding Western sanctions

MOSCOW, February 28. (ST)- Russian President Vladimir Putin signed a decree that introduces special economic measures regarding unfriendly actions by the US and its allies, and its text was published on the Kremlin website on Monday.

The preface says the decree was signed “due to actions by the United States and the foreign states and international organizations that have sided with it, which are unfriendly and run counter to international law and are related to restrictions on Russian nationals and legal entities.”

In addition, the measures listed in the document are applied in order to protect Russian national interests and in accordance with the federal laws On Special Economic Measures and Coercive Measures, On Security and On Measures to Influence (Counter) Unfriendly Actions of the United States of America and the Other Foreign States.

Putin has banned Russian residents from crediting accounts in banks outside the country with currency, according to the decree.

“To ban starting March 1, 2022, crediting accounts in banks located outside the Russian Federation and other financial market organizations with currency by residents,” the document said. Transfer of funds without opening a bank account using electronic means of payment provided by foreign suppliers of payments services will also be banned, according to the decree.

Moreover, Russian residents have been banned from extending foreign loans in currency starting March 1. “To ban foreign currency transactions related to providing foreign currency by residents to non-residents under loan agreements,” the document said.

selling 80% of foreign currency earnings starting February 28

The presidential decree requested the obligatory sale of 80% of foreign currency earnings received on international trade contracts with non-residents starting Monday.

“Starting February 28, 2022, residents – participants of international economic operations should obligatorily sell foreign currency in the amount of 80% of the amount of foreign currency put on their accounts in authorized banks on the basis of international trade contracts concluded with non-residents and stipulating transfer of goods to non-residents, provision of services to non-residents, the performance of works for non-residents, transfer of the results of intellectual activities to non-residents, including exclusive rights to them,” the document said. The requirement should be fulfilled no later than three working days after receipt of foreign currency.

Putin has requested the obligatory sale of 80% of foreign currency put on accounts of residents starting January 1, 2022, under such contracts. This should be done no later than three working days after the decree’s enforcement.

Russian President Vladimir Putin said on February 24 that in response to a request by the heads of the Donbass republics he had made a decision to carry out a special military operation. The Russian leader stressed that Moscow had no plans of occupying Ukrainian territories. Western countries responded to the actions of the Russian authorities by slapping sanctions against physical and legal entities.

Earlier, foreign ministers of 27 countries of the European Union approved the ban on all transactions with the Central Bank of Russia and the freezing of its assets.

Compiled by: Basma Qaddour