Russia Decides on Restrictions for Foreign Investors Retrieving Russian Assets

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Byung-don] Russia has decided to take extreme measures to restrict foreign investors from withdrawing assets within Russia in order to prevent capital outflows triggered by Western sanctions following its invasion of Ukraine.

On the 1st (local time), according to Reuters and others, Russian Prime Minister Mikhail Mishustin said at a government meeting that "a presidential decree has been prepared to temporarily restrict the exit from Russian assets to give companies time to consider and make decisions."

He explained, "Currently, foreign entrepreneurs are being led and forced to withdraw (from Russia) not due to economic factors but political pressure under the current sanctions situation."

According to Russian TASS news agency, Prime Minister Mishustin said that the measure to restrict foreign investors' withdrawal would also help stabilize the ruble exchange rate.

However, Mishustin did not specify how the restriction on foreign investors' asset recovery within Russia would be implemented.

Since Russia invaded Ukraine on the 24th of last month, it has been experiencing severe economic shocks due to widespread international sanctions.

Many foreign companies operating in Russia, including BP and Shell, have announced plans to suspend investments in Russia.

The value of the Russian ruble has fallen to an all-time low, and the Russian central bank raised the base interest rate from 9.5% to 20% on the 28th. The Russian central bank also urged domestic companies to sell foreign currency to help defend the exchange rate.

This content was produced with the assistance of AI translation services.