Putin signs ruble convertibility bill

Putin signs ruble convertibility bill

Russian President Vladimir Putin has signed the federal law “On amendments to the federal law on currency regulation and currency control.” The bill was passed by the State Duma on 8 July, and it was approved by the Federation Council on 14 July 2006, the President’s press service reported.

The bill makes the ruble a freely convertible currency, lifting from 1 July 2006 reserve requirements for banks performing foreign trade operations and transactions with foreign and domestic securities. The government also loses the right to impose restrictions on operations between Russian and foreign legal entities and individuals.

Now, all Russian nationals will be allowed to open bank accounts and keep their money in foreign banks. Restrictions on foreign currency bank accounts in Russia and abroad have been minimized.

Opening a bank account no longer requires any permission or registration procedures. However there are some restrictions on the size of operations, in line with anti-money laundering requirements.

Restrictions on the acquisition by Russian nationals of stakes, deposits and shares in foreign companies have also been lifted, allowing Russian people to be competitive investors on the international capital market.

The amendments confirm the government’s commitment to liberalizing the national economy, Finance Ministry officials say.

Vladimir Putin also signed a number of other bills on Thursday, including amendments to Chapter 22 of the Russian Tax Code, raising excise duties on certain products by 8.5 percent, and the law on competition saying that companies controlling more than 50 percent of any segment of the economy shall be seen as monopolies.

Under the bill, commercial and non-profit organizations, as well as government agencies and state and private funds shall provide information, including commercial and official secrets, upon reasonable request of anti-monopoly bodies. Information regarding banking secrets can be provided by the Central Bank of Russia upon written request of anti-monopoly bodies. (Source: www.rbc.ru)