In Russia, bank accounts of citizens from "unfriendly" countries are being frozen.

In Russia, some foreigners who are citizens of "unfriendly" countries are complaining that their bank accounts and deposits are being blocked. DW reported this, citing clients of T-Bank, Sberbank, and VTB in a report.

 

According to the report, starting in June, the scope of Russian President Vladimir Putin's decree regulating obligations to foreign creditors has been expanded to also cover bank deposits of foreign non-residents. In this regard, some clients have received notifications that their accounts have been blocked to comply with the decree's requirements.

 

Among those whose accounts have been restricted are holders of "talent visas," foreigners who have declared their commitment to Russia's "traditional spiritual and moral values," and ethnic Russians from "unfriendly" countries who are processing documents to move to Russia.

 

Under the new rules, deposit income exceeding 10 million rubles per month for non-residents who are citizens of "unfriendly" countries will be transferred to special "S" type accounts. The ability to use funds in these accounts is severely limited.

 

Since the decree does not clearly specify whether the new rules apply to all types of deposits or only to time deposits, banks are interpreting it differently.

 

The Central Bank of Russia has announced that it will provide official clarifications on the new norms if necessary. Clients whose accounts have been restricted can appeal this decision through the regulator or the courts.

 

For reference, Russia compiled its list of "unfriendly countries" in 2021. This list was expanded after Russia's invasion of Ukraine and the imposition of sanctions against Moscow. It currently includes 49 states, including all 27 member countries of the European Union.