Bank of Russia opens to easing limits on non-resident transactions if sanctions eased

Natalie Portman
By Natalie Portman 1 Min Read
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MOSCOW (RockedBuzz via Reuters) – Russia is open to easing restrictions on transactions by so-called hostile non-residents in exchange for freeing up Russian assets abroad, its central bank said on Tuesday.

Russia implemented capital controls after Western sanctions on Moscow’s actions in Ukraine and prevented foreign investors from hostile states, the ones that imposed sanctions, from selling securities of Russian issuers.

“Requirements for residents can be liberalized as much as possible, while the stringency of requirements for non-residents is expected to differ depending on their jurisdiction,” the Bank of Russia said in a report.

Some companies and foreign investors have found their assets essentially trapped in Russia after Moscow responded to Western sanctions with its own restrictions.

“When establishing bans and restrictions on foreign exchange, the principle of reciprocity should be followed, that is, to introduce bans and restrictions only in relation to residents of those states that have introduced such measures against the Russian Federation,” he added.

Russia’s central bank said it could consider liberalisation, i.e. freeing up assets, in relation to hostile countries in response to the easing of sanctions.

(Reporting by Elena Fabrichnaya; Writing by Alexander Marrow; Editing by Alexander Smith)

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