Russian President Vladimir Putin has signed a decree that will temporarily prevent foreign investors in Russia from selling their assets and withdrawing funds in excess of $10,000 from the country. At Tuesday’s cabinet meeting, the country’s Prime Minister, Mikhail Mishustin, announced the ban.
The move aims to stop capital flight from the country, which has been hit by harsh economic sanctions from the US and Europe. This happened after the invasion of Ukraine on February 24. The list of Western companies, including BP and Shell, that are announcing their plans to halt investments in Russia due to the war is also growing.
Mishustin said the ban would give foreign investors “a chance to make a deliberate decision” before selling their Russian assets.
“In the current sanction situation, foreign entrepreneurs are forced to be guided not by economic factors, but to make decisions under political pressure,” Mishustina was quoted as saying by Reuters.
In addition to the ban, the Russian government has taken other measures. He wants to prevent brokers from selling foreign securities on the Moscow Stock Exchange.
The Russian ruble fell by almost 30 percent on Monday, meaning it is worth less than one penny. A weakening currency could quickly lead to inflation in Russia, exacerbating the economic burden of sanctions.
As the Russians try to get rid of the falling ruble, the trading volumes of bitcoins denominated in the Russian currency have reached their highest level in nine months.