15 December 2003 08:27
Putin signs law on currency regulation and control (Part 3)
MOSCOW. Dec 15 (Interfax) - Russian President Vladimir Putin has signed a law on currency regulation and control
aimed at improving the investment climate in Russia.
"I have signed a law on currency regulation and currency control. This is a very important document," Putin
said at a meeting with key Cabinet ministers in the Kremlin on Monday.
He said that the new law "will make it easier for investors to
understand the rules set out there and will remove outdated
"This law's new draft offers a more transparent and clearer interpretation of a very large number of
crucial provisions in this area," the president said.
The new law "bars the bodies of currency regulation - the
government and the Central Bank - from setting requirements on
restrictions on currency sales."
"In order to achieve these goals, the law's new draft includes an exhaustive and very concise list of
currency operations which are subject to regulation. All the rest of the operations which are not mentioned in the law
can be carried out without any restrictions," Putin said.
''This law will be applied directly, thus providing business with stability and the necessary room for
maneuvering on the market," the president said.
receiving individual permission from residents and non-residents," he said.
"This [law] was deliberately developed as an anti-corruption measure. I think that it will work in the necessary
way," Putin said.
The president said that the law enables residents, both legal entities and private individuals, to open accounts in
banks of member- nations of the Organization for Economic Cooperation and Development and the Financial Action Task
Force.
"Both market players and Russian citizens will benefit from the law," he said.
reduction of the gold and foreign currency reserves and sharp
fluctuations of currency exchange rates in Russia, as well as to
"The law's enactment is somewhat complicated. The economy needs to get used to it, and the domestic banking
system should give an appropriate response to it. They should be ready for competition and work to attract
clients," Putin said.
The country's currency regulation agencies are the government and the Central Bank, and individual issues of
currency regulations will be dealt with by the two bodies together.
The law does not have a list of authorized currency operations,
but contains a list of operations which can be restricted by the
The law introduces a number of restrictions on currency operations between residents and nonresidents in order to
prevent any substantial
sustain the country's balance of payments.
The restrictions, which include, among others, a special account, may be introduced by the bodies of currency
regulation.
Central Bank and the government.
The law allows residents to freely open foreign currency denominated accounts in banks of member-countries of the
Organization for Economic Cooperation and Development and the Financial Action Task Force. [RU EUROPE EEU EMRG LEG ECI]
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