A law banning possession and use of the U.S. dollars in the country is under consideration by the Russian State Duma. In case the law is approved, every Russian citizen would be required to close any dollar accounts they may have at local banks. The citizens would be given a year to convert their dollars into any other foreign currency – euro, pound sterling, renminbi, rupee, etc.
By the end of the yearlong deadline all the dollar-based bank accounts will be shut down automatically. Any dollars found in possession of the citizens by the police, migration service or tax officers, will be confiscated.
The cost of the confiscated dollars would be refunded although not right away, but throughout a 30-day period. These are the procedure descriptions set out by the Russian Federal Law.
“The sole punishment for the violation will be the temporary confiscation of the finances, which represents an adequate response to evading the law,” Mikhail Degtyarev notes to RBK. He is a member of Duma’s Liberal Democratic Party. Mr. Degtyarev is one of the main authors of the drafted law.
Individuals wishing to obtain dollars after the law is passed will have to prove their rationale for doing so. Only tourists travelling to countries where using dollars is an
inevitable reality will be able to buy the currency. Russian citizens traveling to the EU, for instance, would be required to obtain euros.