Putin lifts recent deposit restrictions from foreign nationals, firms' Russia-based branches

Russian President Vladimir Putin has signed a decree exempting foreign bank deposits and Russian-registered branches of overseas companies from Moscow's financial restrictions imposed on "unfriendly countries".

Russian President Vladimir ​Putin signed a decree on ​Tuesday exempting bank ‌deposits held ​by foreign citizens and Russian-registered branches of overseas companies from recently imposed restrictions ‌that had effectively frozen the funds. Moscow introduced special "Type C" bank accounts in 2022 that serve as a financial blockade against what ‌Russia deems "unfriendly countries" - ations that imposed sanctions on the Kremlin ‌over its military operation in Ukraine. Funds belonging to foreign investors, major Western corporations, and institutional funds are directed into these accounts and effectively ⁠frozen.

From ​June 1, 2026, ⁠bank deposits of foreigners from unfriendly countries were also frozen in the ⁠special Type C accounts. However, according to the new amendments, those ​restrictions on bank deposit withdrawals will no longer apply to ⁠foreign individuals, or to deposits made by branches, permanent representative offices, and other ⁠structural ​units of foreign companies, provided they are registered within the Russian Federation. Under the decree, these categories of foreign ⁠depositors are permitted to freely manage their funds and withdraw ruble equivalents that ⁠were ⁠credited to Type-C accounts between June 1, 2026, and the document’s effective date on August ‌4, 2026.