According to reports, the ban will take effect on Wednesday.
Russian President Vladimir Putin is said to have signed a directive prohibiting foreign investors in Russia from selling assets or withdrawing monies in excess of $10,000 for the time being. Russia’s prime minister, Mikhail Mishustin, announced the ban during a cabinet meeting on Tuesday.
The action is intended to stem capital flight from the nation, which has been subjected to increasingly harsh economic sanctions imposed by the United States and Europe since its February 24 invasion of Ukraine. As a result of the invasion, a rising number of Western firms, notably BP and Shell, have declared plans to cease investments in Russia.
According to Mishustin, the prohibition will provide foreign investors with an “opportunity to make a thoughtful choice” before selling their Russian holdings.
“In the present sanction environment, international entrepreneurs are obliged to make judgments under political pressure rather than economic ones,” Mishustin told Reuters.
In addition to the prohibition, the Russian government said on Monday that brokers would be barred from selling foreign-held assets on the Moscow Exchange.
On Monday, the Russian ruble plunged roughly 30%, making it worth less than one penny. The declining currency may swiftly lead to inflation in Russia, worsening the economic burden of the sanctions on both the country’s banking system and its populace.
Rupee-denominated bitcoin trade volumes have reached a nine-month high as Russians seek to devalue their currency.