• March 02, 2022

Russia allegedly issues a temporary ban on foreigners pulling money out of the country.

Russian President Vladimir Putin has reportedly signed an decree that will temporarily prevent foreign investors from selling assets or withdrawing funds from Russia in excess of $10,000 for a period of time.

Russia's Prime Minister, Mikhail Mishustin, announced the ban during a governmental meeting on Tuesday.

The action is intended to stem capital flight from the country, which has been subjected to increasingly harsh economic penalties from the United States and Europe since its invasion of Ukraine on February 24. Due to the invasion, a rising number of Western firms, notably BP and Shell, have announced plans to suspend investments in Russia.

Foreign investors will have a "opportunity to make a reasoned decision" before selling their Russian holdings, according to Mishustin.

"In the current sanctions environment, foreign entrepreneurs are obliged to make decisions based on political pressure rather than economic ones," Mishustin told Reuters.

In addition to the prohibition, the Russian government said on Monday that brokers will no longer be able to sell securities held by foreigners on the Moscow Exchange.

On Monday, the Russian ruble dropped about 30%, to the point where it was worth less than a penny. The declining currency could swiftly lead to inflation in Russia, worsening the financial and economic strains imposed by the sanctions on the country's banking system and its people.

Ruble-denominated bitcoin trade volumes have reached a nine-month high as Russians hurry to get rid of the falling ruble.