In a recent move, the Bank of Russia announced fresh limits on the amount Russians may send abroad over the next six months. Within a single calendar month, an individual can move money from a Russian bank account to a foreign account or to another person overseas, up to 10,000 dollars or its equivalent in another currency. The regulator’s press office reported these thresholds.
There is an additional channel for transfers: monthly transfers through money transfer operators who do not require an account. Those transfers are capped at 5,000 dollars or its equivalent in another currency per month.
The new measures apply to residents and non-residents in countries that do not participate in sanctions against Russia, as well as non-residents working in Russia under employment or civil contracts. The transfer amount is calculated using the official Central Bank rate on the date the transfer order is issued.
Transfer restrictions for non-residents
Simultaneously, the Central Bank decided to bar transfers abroad from the bank accounts of non-residents who have not worked in Russia for six months. This prohibition covers both individuals and legal entities from sanctioning countries.
During the same period, transfers from the accounts of Russian fund brokers belonging to persons and entities from sanctioning countries were suspended as well.
What rules existed before?
On March 1, Russian President Vladimir Putin ordered exporters to repatriate more than 10,000 dollars in cash and to convert 80% of foreign currency earnings into rubles.
To help stabilize the financial system, the Central Bank had already placed a ceiling on wire transfers abroad for Russians and other residents, limiting them to 5,000 dollars per month in early March.
From March 1 to March 31, a ban was placed on money transfers abroad for citizens of countries that impose sanctions on Russia. The measure targeted both individuals and businesses and applied to a list of 43 countries, including the United Kingdom, Germany, and the United States. [Source: Central Bank of Russia]
Experts noted that restrictions on currency movement, reduced demand for foreign exchange due to cutbacks in international travel, and exporters selling foreign earnings could help strengthen the ruble against the dollar and the euro. [Source: Interfax]
Difficulties with transferring money abroad
Many international money transfer services temporarily paused operations in Russia. For instance, the renewal of the Alipay wallet service was affected after Western Union transfers were halted in late March.
Meanwhile, on March 12, the PayPal system suspended operations in Russia, signaling a stance against certain Russian operations abroad. [Source: PayPal]
Also in March, Visa and MasterCard announced a pause on cross-border transactions for cards issued in Russia. Domestic use within Russia remained possible, but foreign transactions were blocked. [Source: Visa, MasterCard]