The Bank of Russia has clarified that the performance by a resident unilaterally or on the basis of an agreement with a person of an unfriendly foreign state of actions (transactions) as a result of which the resident’s obligation under credits and loans and financial instruments to a person of an unfriendly foreign state will be terminated without complying with the temporary procedure for the fulfillment of obligations established by Decree of the President of the Russian Federation No. 95 of 05.03.2022, namely without crediting the performance due to the person of the unfriendly foreign state to the bank’s account.

Termination of the resident’s obligation to the person of a hostile foreign state in other cases is allowed without obtaining the relevant authorization provided for by paragraph 11 of the Decree of the President of the Russian Federation of 05.03.2022 No. 95.

Document: Official Explanation of the Bank of Russia dated 22.03.2024 No. 1-OR “On Clarification of the Procedure for Application of Provisions of Decree of the President of the Russian Federation No. 95 dated March 5, 2022 “On Temporary Procedure for Execution of Obligations to Certain Foreign Creditors” at the Termination of Obligations”.