Additional restrictions on transactions with foreign persons

On 03/18/2022, the President of the Russian Federation established additional restrictions on transactions and transactions with foreign persons.

So, until December 31, 2022, operations are prohibited:

• For payment by residents of the Russian Federation of a share, contribution, share in the property (authorized or pooled capital, mutual fund of a cooperative) of foreign legal entities;
• On the contribution by residents of the Russian Federation to non-residents of contributions to a common cause within the framework of a simple partnership agreement with investment in the form of capital investments.

These operations can be performed only with the permission of the Central Bank of the Russian Federation.

In addition, it is established that credit organizations that have fallen under sanctions have the right to fulfill obligations under bank account (deposit) agreements to legal entities – residents of the Russian Federation in rubles until September 1, 2022, regardless of the currency in which such an obligation is expressed.

Also, the Board of Directors of the Central Bank of the Russian Federation will set the amounts of transactions within which it can be carried out:

• Advance payment or advance payment by residents of the Russian Federation (with the exception of individuals individuals, credit organizations and VEB.Russian Federation) in favor of foreign persons under contracts, the list of types of which will be determined by the Board of Directors of the Central Bank of the Russian Federation;
• Money transfers from accounts of foreign persons (both from friendly and unfriendly states) opened in Russian credit institutions;
• Money transfers by foreign persons (both from friendly and unfriendly states) without opening accounts, including electronic money;
• Acquisition of foreign currency on the domestic foreign exchange market of the Russian Federation by non–resident legal entities.

After the specified amounts of transactions are established (the Central Bank of the Russian Federation is given 10 days for this), transactions exceeding the specified limits will require the permission of the Government Commission for the Control of Foreign Investment in the Russian Federation.