Russian banks begin blocking deposits of citizens from 'unfriendly' countries

Some foreigners from countries Russia considers 'unfriendly' have lost access to funds in their bank accounts and deposits in Russian banks since the beginning of June, according to RBC. The publication reported that clients of T-Bank, Sberbank, and VTB have described such cases. Similar reports have appeared in thematic chats and on the website Banki.ru.

The restrictions have affected citizens of European Union countries, the United States, the United Kingdom, Canada, Japan, South Korea, Australia, New Zealand, Switzerland, Norway, and Ukraine — all states that Russian authorities consider 'unfriendly.' The list currently includes 49 countries.

The cause was amendments to a decree by Vladimir Putin, signed on June 1. The amendments extended the document 'On the temporary procedure for fulfilling obligations to certain foreign creditors' to bank accounts and deposits. Previously, the decree regulated only payments on loans, borrowings, securities, and other obligations.

The new rules require banks to transfer income on deposits of non-residents exceeding 10 million rubles per month to special 'C-type' accounts, whose use is significantly restricted, according to Deutsche Welle. The decree does not specify whether the norm applies to all deposits or only time deposits, and banks interpret the document differently: some immediately block accounts, while others recommend withdrawing funds in advance.

The problem has also affected foreigners who came to Russia as highly qualified specialists under a 'talent visa,' people 'sharing traditional Russian values,' and ethnic Russians processing documents to move from 'unfriendly' countries, according to Novaya Gazeta Europe.

Even a valid residence permit does not always protect against blocking: in some cases, after providing documents, access to accounts was restored; in others, the restrictions remained.

Clients can attempt to challenge the blocking through the Central Bank or the courts. According to RBC, the Central Bank has indicated that it may issue additional clarifications on the new norms.