Russia: Deals with ‘unfriendly’ countries now require approval

Decision comes after Moscow released a list of countries taking ‘unfriendly actions’ against Russia after its attack on Ukraine.

Russia has said all corporate deals with companies and individuals from “unfriendly countries” will now have to be approved by a government commission.

Moscow said on Monday it approved a list of countries and territories taking “unfriendly actions” against Russia, its companies and citizens in the wake of severe economic sanctions over the Ukraine conflict.

The list follows a presidential decree on March 5 allowing the Russian government, companies and citizens to temporarily pay foreign currency debts owed to overseas creditors from “unfriendly countries” in roubles.

According to a government statement, the list includes Albania, Andorra, Australia, Great Britain, including Jersey, Anguilla, British Virgin Islands, Gibraltar, European Union member states, Iceland, Canada, Liechtenstein, Micronesia, Monaco, New Zealand, Norway, South Korea, San Marino, North Macedonia, Singapore, United States, Taiwan, Ukraine, Montenegro, Switzerland and Japan.

To make such payments, the government said debtors should open a special type of rouble account with a Russian bank and transfer the rouble equivalent of the foreign currency amount owed, according to the central bank’s official exchange rate on the day of payment.

This temporary arrangement for paying foreign debts applies to payments exceeding 10 million roubles ($76,000) a month.

Russia’s war on Ukraine has been met with outrage from the international community, with the EU, UK, and US, among others, imposing a range of economic sanctions on Moscow.

Hundreds have been killed in Ukraine since Russia launched its war on February 24, according to United Nations figures, with the real toll feared to be significantly higher.