In an effort to stabilize its depreciating rouble, Russia has introduced new currency controls that impact international companies selling their Russian assets. These restrictions prohibit Western companies from taking the proceeds in dollars and euros when exiting the Russian market, requiring them to sell their assets in roubles, as reported by the Financial Times.
Failure to comply with this regulation by insisting on receiving foreign currency may lead to delays or financial losses on the sums that can be transferred abroad.
The rouble has faced significant depreciation since Russia’s invasion of Ukraine in February last year, prompting Western nations to impose sanctions. These sanctions have had a substantial impact on Russia’s currency and broader economy. In 2023 alone, the rouble lost over 20% of its value against the US dollar, crossing the psychologically important threshold of 100 roubles to the dollar in August.
Efforts to stabilize the rouble have included raising interest rates, introducing export controls, and, most recently, a surprising interest rate hike to 15% by Russia’s central bank. Despite these measures, the rouble continues to hover at around 92 to the US dollar.
Several major international companies have exited or downsized their operations in Russia since the Ukraine invasion, including Starbucks, McDonald’s, Shell, BP, and Carlsberg. The Danish brewer, Carlsberg, found a buyer for its Russian subsidiary, Baltika, in June. However, the temporary seizure of the stake by Vladimir Putin led Carlsberg’s new CEO, Jacob Aarup-Andersen, to state that they would not engage in any deal that legitimized the seizure of their assets.
While these currency controls come amidst the rouble’s struggles, Kremlin spokesperson Dmitry Peskov emphasized that they are not directly linked to recent fluctuations. Peskov reiterated Russia’s openness to external investment and the intention to create favorable business conditions for foreign companies, asserting that the rouble remains a top priority guided by Russia’s own interests and benefits.
Moscow has attributed the rouble’s recent challenges to a drop in export volumes and increased internal demand for imports.
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