Russia Resumes Wartime Capital Controls as Putin Nears Elections
- Major exporters will be required to sell FX on domestic market
- Government move sidelines central bank, which opposed controls
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Russia’s government is reimposing tougher capital controls over the objections of the central bank, according to people familiar with the matter, acting to keep a closer grip on the ruble as Vladimir Putin prepares for presidential elections.
The surprise announcement late on Wednesday imposed measures that will extend over the next six months, a period encompassing Putin’s campaign for a fifth term in elections scheduled for March. They will force 43 groups of exporter companies, including the country’s main oil producers, to sell their earnings from sales abroad on the domestic market for rubles to ensure a supply of foreign exchange.