On foreign bank accounts opened by Russians

Since the spring of 2022, Russian bank cards can no longer be used abroad, and Russian tourists and businessmen have been opening accounts in foreign banks.

The people that do so, must satisfy numerous and sometimes overwhelming requirements of foreign banks, and, just as important, must comply with the appropriate Russian laws. Formally speaking, Russian law does not restrict the right of citizens (so-called “residents”) to open accounts abroad, including in states which have been declared non-friendly. Foreign partners or employers can pay them salaries, rent, dividends, coupons and other interest income without any obstacles.

However, there are many uncertainties caused by the turbulent geopolitical situation. “Opening foreign bank accounts per se, including in non-friendly states, is not a violation of the law or anti-sanctions decrees of the Russian President. But despite the enormous number of legislative acts, some routine everyday operations still require detailed regulation. This includes Russians making cash deposits on their foreign accounts or transfers between foreign accounts of different residents (e.g. transactions between relatives or friends who left the country) and even between a single person’s own accounts opened in non-friendly states after March 1,” reminded Ekaterina Smolovaya, Principal Associate of the Tax practice at Capital Legal Services.