Russian Central Bank intends to challenge freezing of gold & foreign exchange reserves in court

The Bank of Russia (a.k.a. the Central Bank) will challenge the freezing of gold and foreign exchange reserves and is preparing lawsuits, Head of the Central Bank of the Russian Federation Elvira Nabiullina said in the State Duma (lower house of the Federal Assembly), Report informs citing TASS.

She noted that in connection with the freezing of part of the reserves, additional currency control norms had to be introduced. “These currency control norms were introduced. I know that many enterprises also complained very much about foreign economic activity, when it is difficult to pay. But this is a forced measure. If we had gold and foreign exchange reserves, this part [would] not be frozen, there would be no need in such draconian measures for the movement of capital,” Nabiullina explained.

The EU at the end of February decided to ban transactions related to the management of reserves and assets of the Central Bank of the Russian Federation, including transactions with any legal entity, as well as a legal entity or body acting on behalf of or at the direction of the Central Bank.

Earlier, the foreign ministers of 27 EU countries approved a ban on all transactions with the Central Bank of the Russian Federation and the freezing of its assets.