Putin instructed to approve a $1 billion limit on the purchase of foreign currency for transactions abroad

President Vladimir Putin instructed to establish a monthly limit of $1 billion for the purchase by residents of currency within the country for crediting to foreign accounts. The instruction was given to the government and the Bank of Russia, it must be executed before June 1. Also, Mr. Putin instructed to approve those cases for which this limit does not apply.

Money credited to foreign accounts must be used for authorized transactions. They must be approved by the government commission for the control of foreign investment.

According to the legislation, residents have the right to buy foreign currency on the domestic foreign exchange market of the Russian Federation in the manner and for the purposes determined by the Central Bank. Foreign currency purchase and sale transactions can be carried out directly between authorized banks, as well as through currency exchanges.

In March 2022 Russia introduced temporary restrictions on the exit of foreign business from Russian assets. Also were limited operations with shares in the authorized capital of limited liability companies. In December, the President of the Russian Federation allowed the government to issue temporary permits for transactions with persons subject to Russian counter-sanctions.

The issuance of permits for residents to carry out transactions with foreign persons of unfriendly states, as well as foreign exchange transactions, is handled by a subcommittee of the government commission for the control of foreign investment in the Russian Federation. It is headed by Finance Minister Anton Siluanov.

Read about the deals in the publication “Kommersant” “Foreigners Merge and Absorb”.

Maria Fedotova