Russian President Putin continues to punish “unfriendly countries”

RT reported, on May 4, President Russia Vladimir Putin signed a decree on temporary procedures to distribute profits of domestic companies to people from “unfriendly countries” when such payments are due. The document has been published on the official government legal portal.

The document says that “if a decision is made on the distribution of profits”, the payment of such profits to so-called “foreign creditors” will be made according to a presidential decree signed in early March.

According to the document, if a Russian company decides to split the profits, residents from unfriendly countries will by default receive their share in a special Type C (Type-C) bank account. . Funds cannot be withdrawn from this account but can only be used for a limited number of purposes, such as paying taxes or buying Russian bonds. However, the Central Bank and the Ministry of Finance of Russia can issue separate licenses for transferring money to ordinary accounts.

At the beginning of March, President Putin signed a decree on the provisional procedure for the performance of obligations towards foreign creditors from countries that have imposed orders. punish Russia. This applies to debt obligations (credits, loans, bonds) of regions and municipalities of Russia, as well as to individuals and legal entities making payments totaling more than 10 million rubles per month ($150,000) or equivalent hard currency.

This decree means that Russians who borrow from foreign creditors in foreign currency have the right to repay their debts in ruble. The decree also obliges foreign creditors (or nominal holders of securities) to open Class C accounts at Russian banks.

In order to meet obligations related to the issuance of securities, a Russian borrower may open such an account with Russia’s central securities depository. The borrower can then transfer funds in rubles equivalent to exchange rate Central Bank’s exchange rate on the date the payment is made.

Earlier, on May 3, President Putin also signed a decree to apply special economic retaliatory measures against “unfriendly countries”.

The decree prohibits government agencies, organizations and individuals from “conducting transactions (including the conclusion of foreign trade contracts) with legal entities, individuals and organizations” in the new sanctions list. .

The decree also prohibits the export of products and raw materials if they benefit individuals and entities that Russia has sanctioned.

Russian entities and individuals are also prohibited from performing obligations and conducting financial transactions with sanctioned companies and individuals.

The move comes after the US and EU imposed an unprecedented series of economic sanctions on Russia over its military campaign in Ukraine. Gold reserves and foreign exchange reserves of the Central Bank of Russia and many other organizations and businessmen are frozen abroad.

Russian banks are excluded from the international payment system SWIFT. Many countries ban imports Russian oil and gas and a series of foreign enterprises withdrew from the Russian market.