The Executive Order supplements measures set forth in Presidential Executive Order No. 79 of February 28, 2022, On Imposing Special Economic Measures in Connection with the Hostile Actions of the United States in League with Other Foreign States and International Organisations, Executive Order No. 81 of March 1, 2022, On Additional Temporary Economic Measures to Ensure Russia’s Financial Stability, and Executive Order No. 95 of March 5, 2022, On Temporary Procedure for Meeting Loan Obligations to Certain Foreign Creditors.
The President ordered that the Russian Federation Central Bank Board of Directors be authorised to set the maximum transaction amount that the residents can use for making early and advance payments, as well as transferring funds to foreign legal entities and non-resident individuals under contracts as listed by type by the Central Bank Board of Directors, as well as for non-resident legal entities for buying foreign currency on the Russian Federation foreign exchange market.
Various restrictions concern foreign non-resident legal entities registered in countries which have been undertaking hostile actions towards the Russian Federation, Russian legal entities or individuals.
The President also introduced a provisional ban on carrying out certain transactions and subjecting them to authorisation from the Central Bank.
The Executive Order also vests the Central Bank with the authority to authorise certain transactions and the power to officially interpret matters regarding the implementation of the Executive Order.
In particular, the Executive Order establishes that until September 1, 2022, liabilities under bank account (deposit) agreements denominated in foreign currency and signed between lending institutions subject to restrictive measures enacted by countries undertaking hostile actions and clients of these organisations who are resident legal entities (if these liabilities arise before these measures are enacted), shall be deemed duly performed if carried out in rubles for an amount equivalent to the liabilities in foreign currency as per the official exchange rate of the Russian Federation Central Bank as of the date of payment.
In addition, the Executive Order stipulates that the restrictions it sets forth do not extend to money transfers denominated in foreign currency to accounts (deposits) with banks located outside of Russia and held by Russia’s diplomatic and consular missions and Russia’s permanent missions at international (intergovernmental, interstate) organisations, or other official missions of the Russian Federations, or the missions of federal executive agencies, representative offices or branches of resident legal entities located outside the Russian Federation as well as their employees. It is also provided that certain requirements set forth in this Executive Order shall not apply to some organisations involved in projects to produce liquefied natural gas in the Russian Arctic in terms of foreign currency credited to the accounts of these organisations in connection with these projects.
In addition, the Executive Order expands the authority of the Government Commission on Monitoring Foreign Investment in Russia.
The President issued several instructions to the Government and the Central Russian of the Federation Bank.