Nonresidents from 'unfriendly' states to have to obtain authorization from govt commission to conduct transactions in Russia - decree

MOSCOW. March 1 (Interfax) - Nonresidents from countries designated as "unfriendly" to Russia will have to obtain authorization for transactions in Russia, including the raising of ruble-denominated loans, from a governmental commission, in line with a decree signed by Russian President Vladimir Putin.

The decree titled On Additional Provisional Economic Measures to Ensure the Russian Federation's Financial Stability was circulated by the Kremlin press service on Tuesday.

The decree was signed "in the wake of unfriendly actions going against international law by the United States and foreign countries and international organizations that have joined it, related to the introduction of restrictive measures with regard to citizens of the Russian Federation and Russian legal entities, with the aim of protecting the Russian Federation's national interests and ensuring its financial stability."

Starting March 2, the decree introduces a special procedure for Russian residents to carry out transactions (operations) with foreign persons associated with unfriendly states and entities controlled by them. These include transactions to raise credits and loans (in rubles), as well as transactions "to acquire ownership of securities and real estate," which, according to the decree, will have to be authorized "by a governmental commission for control over foreign investment in the Russian Federation."

Transactions with securities can be conducted on an exchange based on permits stipulating their terms, issued by the Central Bank and cleared with the Finance Ministry.

The procedure instituted by the decree shall not apply to transactions (operations) to which the Central Bank and government bodies are parties. Banks shall be allowed to conduct transfers in foreign currency to corresponding accounts with nonresident banks in line with the restrictions introduced by the decree.