Russian media reported this citing the statement from the regulator chairman, Elvira Nabiullina.
The regulator of the occupying country has faced unprecedented sanctions against the background of the military aggression in Ukraine. European Union decided to ban its citizens from all of the transactions with the Bank of Russia and the individuals acting on its behalf or its instructions. It has effectively frozen the Bank of Russia’s reserves abroad. The USA made a similar decision: Russian Central Bank is not included in the SDN blocking list, but US citizens can no longer conduct operations with it, as well as with the Ministry of Finance and the National Welfare Fund. Japan also joined the sanctions.
This significantly complicates the Central Bank’s actions to support the ruble and financial stability in the country.
About 50% of Central Bank’s reserves are located in the countries which have joined the sanction, and these reserves will be blocked, the EU Chief Diplomat Josep Borrell said. As of February 18, international reserves of the Bank of Russia amounted to the equivalent of $643 billion. As of February 1, $311 billion of reserves were placed in securities of foreign issuers, $152 billion - in cash and deposits with banks abroad. Another $132 billion was stored in gold in Russia.
The Russian ruble fell to an all-time low, Moscow Stock Exchange canceled the morning session on February 28.