With the Decree No. 430 of March 5th, 2022
the Russian Government has released the list of countries deemed “Unfriendly” with reference to which the various countermeasures already adopted and those in the process of being adopted by the Russian Federation will be applied, as a response and reaction to the sanctions adopted by Western countries against it following the aggression of Ukraine.
The list includes Australia, Albania, Andorra, United Kingdom, including Jersey, Anguilla, British Virgin Islands, Gibraltar, Member States of the European Union, Iceland, Canada, Liechtenstein, Micronesia, Monaco, New Zealand, Norway, South Korea, San Marino, North Macedonia, Singapore, USA, Taiwan (China), Ukraine, Montenegro, Switzerland, Japan.
The purpose of this Executive Order is to implement Presidential Decree No. 95 establishing “Temporary Arrangements for the Fulfilment of Obligations to Certain Foreign Creditors“, which was also published on March 5th, 2022, with the aim of preserving the Russian financial system and the stability of the Russian currency, by intervening on the ways by means of which the Russian authorities and subjects residing in the Russian Federation can fulfill their obligations towards foreign entities and entities belonging to or connected with so-called Non-Friendly Countries in respect of loans, financing and financial instruments.
More precisely, it is provided that such obligations must be fulfilled by Russian subjects in Russian currency (Rubles) by means of deposit on specific deposit accounts opened in the name or in favor of the foreign creditors at Russian banking institutions, which will transfer to the latter the sums thus deposited by applying the foreign currency conversion rate established by the Russian Federal Central Bank.
Only transactions exceeding the value of 10 million Rubles per calendar month or an equivalent amount in foreign currency are subject to the above restrictive discipline.
Viorica Efros
Junior Partner
Head of the East European Desk
E: viorica.efros@l2bpartners.com
