The federal law grants foreign banks the right to operate in the Russian Federation through their branches.
However, it specifies that a foreign bank can have only one branch in the Russian Federation.
The federal law outlines a list of authorised banking operations and transactions, and prohibits banking operations and transactions with individuals, including those who are registered as individual entrepreneurs.
The operation of a foreign bank branch in the Russian Federation is contingent upon a contract between the Bank of Russia and an authorised supervisory body of the relevant state where the foreign bank is located, on exchanging information (in the form of a memorandum, contract or any other form adopted in international practice).
The law also stipulates that the Bank of Russia is responsible for supervising the activities of foreign bank branches in the country.