President Vladimir Putin has announced a policy shift aimed at easing the transfer of dividends earned abroad, provided those funds are directed to strengthening Russia’s trade relationships. He shared this at a gathering of the Russian Union of Industrialists and Entrepreneurs (RSPP), framing it as a move to safeguard the country’s economic interests and the vitality of its business sector.
Putin emphasized that decisions taken by Russia’s leadership would protect national assets and the economy. He warned that any action perceived as unlawful or improper regarding Russian holdings, including gold reserves and foreign exchange, would be met with a firm response, including measures affecting dividend payments. He noted that funds should not be moved outside the country if they are connected to these assets.
The president also indicated that Russia would implement steps to curb the outward flow of dividends to Western markets in retaliation for the seizure and freezing of Russian assets abroad. The aim is to reinforce the resilience of the domestic economy when external pressures pressure financial resources and asset holdings.
Earlier, in March of the previous year, the Central Bank of the Russian Federation announced a set of measures to stabilize markets by preventing a broad sell-off of Russian securities and controlling the withdrawal of funds from the financial system. These actions were part of a broader strategy to maintain liquidity and confidence during periods of international strain.
Since the launch of Russia’s military operation in Ukraine, many Western governments have imposed sweeping sanctions on Moscow and have frozen a substantial portion of Russian assets abroad. By late 2022, the European Union reported that it had frozen assets valued at about 68 billion euros. The ongoing policy discussions reflect a continuing tension between safeguarding domestic economic interests and navigating a landscape of external economic and political restrictions.