8 Jun 2022 13:31

State Duma adopts law on president's right to impose capital restrictions on financial market

MOSCOW. June 8 (Interfax) - The State Duma passed in the third reading the law, which legally prescribes the powers of the Russian president in the matter of imposing capital restrictions on the financial market and application of measures aimed at ensuring the financial stability of Russia in conditions of sanctions.

The amendments (N1101162-7) were introduced at the end of May by a group of deputies to the law "On measures of influence (counteraction) against unfriendly acts of the United States and other foreign states" (127-FZ).

It is stipulated that the Russian president has the right to establish a special procedure for certain transactions with the participation of foreign persons related to unfriendly foreign states both for citizens and companies; a special procedure for Russian legal entities to fulfill obligations to pay distributed profits (dividends) to participants who are persons of unfriendly foreign states; a special procedure for currency regulation and currency control, including with regard to currency transactions by residents and non-residents

The adopted law stipulates that measures aimed at ensuring financial stability may include: bans on certain individual transactions, including bans or restrictions on currency transactions; changes in the currency of obligations under certain contracts; the need to obtain special permission for individual transactions, opening accounts and deposits, conducting operations on them; freezing (blocking) of funds or other property; the establishment of limits of currency transactions conducted; establishment of requirements for the purchase or sale of foreign currency on the exchange; establishment of requirements for the purchase or disposal of debt instruments, securities and other financial instruments.

It is specified that part of the powers to impose restrictions may be delegated by the president to the government or the Central Bank.

The law will enter into force from the date of its official publication.