The City of London daily Financial Times has accused Russia of imposing capital controls by squeezing companies which are leaving Russia, Reuters reported today. London’s argument is that Russia is imposing caps on the material which the companies are trying to sell within Russia before they leave. “The Financial Times cited an investment banker as saying that foreign currency transfers abroad had been limited to $20 million per day and a seven-day deadline imposed on closing a sale, effectively preventing sellers from receiving more than $140 million,” reported Reuters. “Simple math shows that it was impossible for the seller to receive all the proceeds from the deal,” FT quoted the investment banker as saying. FT cites “Another person working on a number of exits” who said the government commission on foreign asset sales had “told them there was an informal cap of $500 million that could be transferred overseas. ‘The state has imposed capital controls without saying so. The state says, “It’s not forbidden to be paid in euros or dollars, it’s just complicated.” It’s up to you whether you cash out in foreign currency or in rubles, or whether you do not cash out at all,’ the person said.”
The FT quoted Kremlin spokesman Dmitry Peskov as telling it that “we create the most favorable conditions for the ruble.”
