Russia bans all residents from transferring money abroad in response to Western sanctions

The Russian rouble has plunged sharply

Samuel Lovett
Senior News Correspondent
Monday 28 February 2022 18:59
Comments
Liz Truss says there will be 'economic cost' from the sanctions placed on Russia
Leer en Español

Vladimir Putin has ordered a ban on foreign exchange loans and transfers by Russian residents to outside of the country, the Kremlin said on Monday, in retaliation for economic sanctions imposed on Moscow by the West.

The Russian president also signed into law an order for exporting companies to sell 80 per cent of their foreign exchange earnings made since 1 January on the market.

It comes as Foreign secretary Liz Truss said Britain was set to lock Russia’s Sberbank out of sterling clearing and slap sanctions on three other banks. There will be a full asset freeze on Russian lenders within days, she added.

The UK government also advised citizens against all travel to Russia and ordered its ports to ban any vessels that are Russian as it increased pressure on Moscow.

The Russian rouble plunged sharply in early Monday trading and the central bank more than doubled its key rate to 20 per cent in an emergency move after the West imposed further economic sanctions over the weekend.

This included the Western decision to freeze Russia’s hard currency reserves in an unprecedented move that could have devastating consequences for the country’s financial stability.

Katya, a resident from Moscow, told The Independent: “My Russian bank card doesn’t work anymore. Also I wanted to exchange the rubles I had in cash but the exchange rate is so horrible that there’s no point. I can use them for toilet paper now.”

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

By clicking ‘Create my account’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in