Deposits held by citizens of “unfriendly countries” in Russian banks have begun to be frozen
28 June 14:09
Foreign nationals from “unfriendly” countries have begun to face restrictions on access to funds in their accounts and deposits in Russia due to a new decree issued by dictator Vladimir Putin. This was reported by customers of Sberbank, VTB, T-Bank, and Alfa-Bank. Similar complaints have appeared in online discussion forums. "Komersant Ukrainian" reports this, citing Russian propaganda media.
Effective June 1, by decree No. 377, Putin extended the scope of “counter-sanctions” decree No. 95 to bank deposits; this decree regulates payments on loans, securities, and other debts owed to creditors from “unfriendly” countries. Banks are now required to transfer interest income on deposits held by such individuals exceeding 10 million rubles per month to special “Type C” accounts, access to which is significantly restricted.
However, the decree does not specify whether the new rules apply to all deposits or only to term deposits, leading banks to interpret the document differently. Some are blocking access to funds, while others are advising customers to withdraw money from their deposits in advance. Even a residence permit in Russia does not always help avoid having funds frozen: in some cases, access to accounts was restored after the funds were released, while in others it was not. The Central Bank stated that, if necessary, it will issue clarifications regarding the application of the new rules. Affected customers can challenge the restrictions by appealing to the regulator or to the court.
Experts surveyed believe that, pending the Central Bank’s clarifications, banks will adopt the most cautious interpretation of the new requirements. The list of countries “unfriendly” to Russia includes the European Union, the United States, the United Kingdom, Canada, Japan, South Korea, Australia, New Zealand, Switzerland, Norway, Ukraine, and a number of other states.
