New Law Officially Bans Foreign Banks from Opening Branches on the Territory of the Russian Federation

September 25, 2013

In keeping with the commitments it made prior to joining the World Trade Organization (WTO) to remove inconsistencies in legislation regulating the Russian banking sector, the Russian Government passed the Federal Law “On Amendment of Certain Legislative Acts” (the “Amendments”), which entered into force on March 26, 2013 and officially bans foreign banks from opening branches in the Russian Federation (RF).1 Although foreign banks were never expressly prohibited from opening branches in the RF, they were nevertheless unable to do so because no rules were ever established for their registration. Now it is expressly stated that foreign banks are prohibited from operating branches on the territory of the RF.

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