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Suspension of operations in ‘toxic currencies’ to cover legal entities — Bank of Russia

Earlier, the Russian president signed the decree, whereby Russian banks, whose assets in foreign currencies are frozen abroad, will be able not to honor commitments on business deposits in such currency and suspend certain operations with them on a temporary basis

MOSCOW, August 9. /TASS/. Norms about the right of Russian banks hit by sanctions to suspend transactions in ‘toxic currencies’ will apply only to accounts of legal entities and sole entrepreneurs, press service of the Central Bank of Russia told TASS.

"Norms regarding suspension of banks’ honoring their obligations towards clients in foreign exchange contained in the [presidential] decree pertain to legal entities and sole entrepreneurs only," the press service said. "This refers only to obligations for funds in foreign exchange that can be credited at deposits and accounts of companies or sole entrepreneurs after the decree takes effect (after August 8)," the Central Bank said.

Russian President Vladimir Putin signed the decree earlier, whereby Russian banks, whose assets in foreign currencies are frozen abroad, will be able not to honor commitments on business deposits in such currency and suspend certain operations with them on a temporary basis.