Russian President Vladimir Putin signed a decree on Tuesday that removes withdrawal restrictions on a subset of bank deposits held by foreign individuals and by local units of foreign companies. The measure amends the rules governing so-called Type C accounts, a category of special bank accounts created in 2022.
Type C accounts were instituted as a mechanism to hold funds belonging to entities from countries the government classifies as "unfriendly." Under the arrangement, funds from foreign investors, major Western corporations and institutional funds were routed into these accounts and effectively frozen.
According to the new decree, deposits belonging to foreign citizens and deposits made by branches, permanent representative offices and other structural units of foreign companies that are registered in the Russian Federation are no longer subject to the prior withdrawal limitations. The amendments permit these specified categories of foreign depositors to manage their funds and to withdraw the ruble equivalents that were credited to Type C accounts during a defined window.
The decree explicitly covers ruble equivalents credited to Type C accounts between June 1, 2026 and the document's effective date, August 4, 2026. The article of law that froze deposits starting on June 1, 2026 is therefore partially reversed for the groups named by the decree, restoring access to those particular funds.
The change does not state that all previously frozen assets are now free for withdrawal. Instead, it targets deposits held by foreign individuals and the local, registered units of foreign companies and limits the restoration of withdrawal rights to those ruble equivalents credited within the June 1 to August 4, 2026 window.
Operationally, affected depositors will be able to request and receive withdrawals in ruble terms for the covered credits to Type C accounts. The decree specifies the eligible categories of depositors and the precise timeframe for credited amounts that may be managed and withdrawn, but it does not extend those privileges beyond the groups and dates it names.
While this amendment alters the status of a defined collection of frozen deposits, it leaves in place the broader framework of Type C accounts and the distinction drawn between depositors from countries classified as unfriendly and other depositors. The decree therefore represents a limited rollback of restrictions rather than a wholesale lifting of the Type C account regime.
Key points
- President signed a decree lifting withdrawal limits for certain foreign individuals and Russian-registered branches and representative offices of foreign companies affected by Type C account rules.
- Type C accounts were introduced in 2022 to hold funds from entities in countries labeled "unfriendly," and these accounts had frozen funds from foreign investors, major Western corporations and institutional funds.
- The decree permits withdrawal of ruble equivalents credited to Type C accounts between June 1, 2026 and August 4, 2026 for the specified categories of depositors.
Risks and uncertainties
- The decree applies only to deposits and depositors explicitly named; other frozen assets or categories of depositors may remain subject to restrictions.
- Withdrawals are limited to ruble equivalents credited during the June 1 to August 4, 2026 period; amounts credited outside that window are not covered by this change.
- Practical and operational challenges at banks and corporate units could affect the pace and execution of permitted withdrawals, since the decree specifies eligibility and time bounds rather than operational mechanics.