Putin Eases Access to Frozen Foreign Deposits

Russian President Vladimir Putin has signed a decree exempting certain bank deposits held by foreign citizens and Russian-registered branches of foreign companies from recently imposed restrictions, making it possible to access funds that had previously been frozen.

Russia introduced special Type C bank accounts in 2022 as a financial blockade against countries it considers hostile over sanctions imposed in response to the war in Ukraine. Funds belonging to foreign investors, major Western companies and institutional investors were deposited into these accounts, where they were effectively frozen.

From 1 June 2026, the restrictions were extended to bank deposits held by citizens of countries Russia classified as unfriendly.

Under the new decree, however, the withdrawal ban will no longer apply to foreign individuals or to deposits held by branches, permanent representative offices and other structural units of foreign companies, provided they are registered in the Russian Federation.

These categories of foreign depositors will be able to freely manage their funds and withdraw ruble equivalents credited to Type C accounts between 1 June and 4 August 2026.

(Reuters, bak)