Bank of Russia Puts Limits on Foreign Cash

The Bank of Russia has imposed a six-month restriction on local companies’ access to foreign currency cash in an effort to preserve hard currency amid sanctions against the country.

As Reuters reported Thursday (March 10), the restrictions — which are in effect until Sept. 10 — prevent companies and entrepreneurs who want American dollars, Japanese yen, British pounds and euros in cash from receiving more than $5,000 worth. And even then, they can only use the money to fund overseas work trips.

The central bank, which saw its gold and foreign currency reserves frozen by the sanctions, said it would consider lifting the $5,000 in special circumstances.

The Bank of Russia, whose gold and foreign currency reserves were frozen under the sanctions, added in a statement on its website that the $5,000 limit could be increased in special circumstances in consultation with the regulator.

The limits do not apply to foreign cash from other countries, the bank said.

These new measures follow restrictions laid down earlier this week on citizens’ ability to access foreign currencies, preventing residents from withdrawing more than $10,000 until September 10 and barring banks from selling hard currency in cash.

The banks move come as Russia faces its worst economic conditions in more than 30 years following its invasion of Ukraine, which triggered worldwide condemnation and harsh sanctions from a number of western governments.

Read more: McDonald’s Estimates Russian Eatery Shutdown Will Cost $50M Monthly

In addition, many businesses have suspended their operations in Russia, including McDonald’s, which said Thursday it would lose around $50 million a month for closing its 850 locations in Russia, and another 108 in Ukraine.

The fast-food giant says it will continue to pay full salaries to all Ukrainian employees and has committed to paying all of its roughly 62,000 Russian employees, as well as the lease payments and supply chain costs.

​​“We expect this to be temporary and we certainly don’t take this decision lightly, but for us this is about doing what we think is the right thing to do, both for the global business and for our people locally,” CFO Kevin Ozan said.

Other brands that have halted operations and suspended sales in Russia include

Starbucks, Yum Brands, Papa John’s, Coca-Cola, Levi Strauss, Pepsi and Apple.