Putin bans foreign currency export exceeding $10,000 as sanctions cripple Russia's economy

Russian President Vlimir Putin on Tuesday signed a decree that bans exporting more than $10,000 worth of foreign currency in cash and “monetary instruments” with effect from March 2.

move comes in response to crippling sanctions imposed on Moscow by western nations over its invasion of Ukraine, which this week tanked ruble to -0.71 and sent Russians flocking to banks and ATMs, fearing fate of ir savings.

Or measures Putin ordered this week included obligating Russian exporters to sell 80% of ir revenues in foreign currency, prohibiting residents from providing n-residents with foreign currency under loan agreements, and depositing foreign currency into foreign bank accounts.

Russia has witnessed a reverse of three deces of investment by West in wake of its military offensive against Kyiv. With foreign governments and organizations launching sanctions after sanctions and locking banks out of SWIFT money messaging system, foreign companies are looking to make an exit from country.

Russia blocks foreign investments from leaving country

Witnessing a mass exodus of companies over its invasion of Ukraine, Russia on Tuesday, March 1, blocked foreign investments from leaving country. Anuncing move, Russia's Prime Minister Mikhail Mishustin asked entrepreneurs to t fall under 'political pressure' when making decisions. 

move came as US and European Union vowed to w a "total ecomic and financial war" against Russia that will cause "collapse" of its ecomy.

US, world impose financial sanctions on Russia

United States on February 28, cut off Russian Central Bank and sanctioned state investment fund, in hard-hitting retaliation for Russia's invasion of Ukraine. White House anunced that US along with its allies and partners are preventing Vlimir Putin from accessing his $630 billion war chest and fund his attacks on Ukraine.

President Joe Biden h anunced that US will impose a variety of ecomic sanctions targeting Russia's state-owned banks, high-end techlogy imports as well a number of wealthy elites and members of Putin's inner circle.  United Kingdom and European Union h previously anunced similar sanctions.

Earlier, US and its allies anunced removal of select Russian banks from SWIFT messaging system. Restrictions on Russian Central Bank target its access to more than $600 billion (Rs 45,419.70 crore) in reserves Kremlin has at its disposal. sanctions took Russian currency to its lowest level against dollar in history.