(Bloomberg) — President Vladimir Putin banned all Russian residents from transferring foreign currency abroad, hardening capital controls as part of a package of retaliatory measures for U.S. and European sanctions over his invasion of Ukraine.
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The steps, which take effect March 1, include a ban on payments of hard currency made to foreigners “in connection with loan agreements,” according to the text of the decree published Monday.
The central bank later issued a clarification, saying the ban “only covers new loans and not servicing of existing debt.”
The Kremlin provided no other immediate explanation of the decree text.
The steps are part of a package of retaliatory measures for U.S. and European sanctions over his invasion of Ukraine. They also include restrictions on companies buying back their own stock,
The U.S. and its allies have imposed sweeping sanctions on Russia’s biggest banks, including the central bank, and limits on billionaires and top officials including Putin himself for the invasion of Ukraine. The moves triggered a sharp drop in the ruble and forced the central bank to take emergency steps to stabilize the market.
(Corrects to reflect subsequent central bank clarification that ban doesn’t cover servicing existing foreign debt)
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