Updated 7.03.21
We already wrote about Russia's disconnection from SWIFT and the consequences of the introduction of economic sanctions. here. Today, more specifically about which banks are disabled, what restrictions are imposed on individuals, what about the purchase of currency and payment cards.
Who is disconnected from SWIFT in Russia?
Since March 12, 2022, the following Russian banks have been disconnected from SWIFT in Russia: VTB, Vnesheconombank, Otkritie, Sovcombank, Promsvyazbank and Novikombank.
The accounts and assets of these banks are frozen in all countries that have joined the sanctions.
What other sanctions in the banking sector?
The sanctions also apply to companies in which at least 50% of the shares are owned by banks that fell under the sanctions.
Partial sanctions have been imposed on Sberbank, which must close correspondent accounts in the United States within a month.
Gazprombank, Rosselkhozbank, Moscow Credit Bank and Alfa-Bank are prohibited from raising capital on Western markets, including by placing their shares.
What about the Central Bank of Russia?
Also sanctions. Partial disconnection from SWIFT, the gold and foreign exchange reserves of the Bank of Russia can no longer be used to contain the ruble. And it will also be almost impossible to sell them: the EU, the USA and Japan have banned individuals and legal entities from any transactions with the Ministry of Finance and the Central Bank. Violators of the ban face large fines and “secondary” sanctions.
Deposits and savings of Russians
Since February 28, by decision of the Government of Russia, Russians are prohibited from making transfers to their own accounts in Western banks, as well as through the PayPal system. The European Union has limited the amounts that can be in Europe on the accounts of Russian residents, up to 100.000 euros. The UK has introduced a limit of 50.000 pounds.
Since March 2, the Russian government has been restricting transactions between Russian residents and foreign citizens of "unfriendly countries". In particular, it prohibits lending (loan or credit) or making transactions that may entail ownership of real estate or securities.
On March 2, the Decree of the President V.V. Putin that the amount of currency that a Russian can take abroad should not exceed $10.000.
Mandatory sale of 80% of the foreign exchange earnings of Russian companies to the state is also among the "measures". And from March 4, the Central Bank of Russia resumes the purchase of gold on the domestic market of precious metals and begins to sell gold bars to the population. The State Duma is considering the possibility of abolishing VAT for such purchases.
Plastic cards. What's up with them?
Since March 12, 2022, the following Russian banks have been disconnected from SWIFT in Russia: VTB, Vnesheconombank, Otkritie, Sovcombank, Promsvyazbank and Novikombank.
The accounts and assets of these banks are frozen in all countries that have joined the sanctions.
Mastercard and Visa announced that they will suspend the provision of services in the territory of the Russian Federation from March 10. Russian bank cards will not work abroad, and Western bank cards will not work in Russia. What to do if you are abroad?
If possible, withdraw cash from your card. Or issue a (albeit electronic) Mir card, which is accepted in countries such as Abkhazia, Armenia, Belarus, Vietnam, Kazakhstan, Kyrgyzstan, Tajikistan, Turkey, South Ossetia. A wider geography of using the card will be if your card is supported by the Chinese UnionPay system - it works in more than 180 countries of the world. Many Russian banks also issue and are going to start issuing UnionPay cards.
How to buy currency in Russia? Commission
The exchange rate soared, it is known. In addition, since March 3, the Bank of Russia has been charging a commission from individuals when buying foreign currency on the stock exchange. Without a commission on the stock exchange, Russians can still buy the Swiss franc or the Japanese yen.
When buying currency in the Russian Federation from brokers (that is, at exchange offices), the commission will be 12%.
You can still withdraw currency from Tinkoff cards, but with restrictions: dollars - up to 15.000, euros - up to 15.000 per transaction.
Publication Date: 04.03.2022
