Putin will be given the right to single-handedly restrict currency transactions of individuals and companies in Russia
Photo: EPA

The Russian dictator Vladimir Putin will be able to impose unilateral restrictions on almost any currency transactions of individuals and companies by decree. This was reported by the Russian news agency Interfax.

It is noted that such powers are granted to Putin by amendments to the law "On Currency Regulation and Currency Control" prepared by the Ministry of Finance of the Russian Federation.

According to the document, Putin will have the right to:

  • directly prohibit foreign exchange transactions;
  • limit their scope, number, or timing;
  • establish requirements for obtaining special permits for currency transactions;
  • introduce mandatory sale of foreign currency;
  • prohibit opening or maintaining foreign currency accounts in Russian banks.

It is expected that presidential decrees will be equated with acts of currency legislation. This means that violation of such decrees will be punished on a par with violation of the law.

Since the outbreak of a full-scale war against Ukraine and the imposition of Western sanctions, the Russian authorities have repeatedly imposed currency restrictions.

Following the disconnection of most banks from the SWIFT system, the loss of access to cash foreign currency and the freezing of about $300 billion in foreign currency reserves abroad, Russia introduced mandatory sales of foreign currency earnings for businesses and restrictions on cash withdrawals.

In particular, Russian citizens can withdraw no more than $10,000 in cash, and only from accounts opened before March 9, 2022. Businesses are prohibited from issuing cash in dollars, euros, pounds, yen, and other "unfriendly" currencies.