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The capital controls announced by Russia, following the severe sanctions imposed by the West because of the war in Ukraine, according to Russian media are intended to curb the massive flight of capital and business
Missustin said that the sanctions imposed on Russia make foreign investors decide not for economic reasons but because of "political pressure".
"To enable businesses to make informed decisions, a draft presidential order has been prepared to introduce temporary restrictions on exiting Russian assets," he said. "We expect that those who have invested in our country will be able to continue working here."
Those who do not give in to the pressure will win
"I am confident that the pressure of sanctions will eventually subside and those who do not restrict their projects in our country, bowing to the slogans of foreign politicians, will win," the Russian prime minister said.
Mysustin said there would be daily meetings to try to address the economic impact of the sanctions.
"It is important to monitor the current situation in real time and immediately work out all necessary measures," he said."
Ruble plummets
On Monday, the ruble collapsed to a record low against the US dollar, the Russian central bank more than doubled interest rates to 20 percent and the Moscow stock exchange closed for the day. It will remain closed on Tuesday, the central bank said.
The European subsidiary of Russia's largest bank was on the verge of collapse, according to CNN, as savers rushed to withdraw their deposits. Economists warned that the Russian economy could shrink by 5%
IIF's estimate
Russia would face capital controls and a bank holiday, according to an analysis by the International Institute of Finance (IIF), the global financial industry association of more than 450 member banks from more than 70 countries.
The IIF stresses that the sanctions imposed so far target Russia's domestic financial system, causing deposit outflows and forcing Russia's central bank to raise interest rates and use its foreign exchange reserves.
According to the International Finance Institute's analysis, if the situation remains as it is, Russia's central bank will be forced to impose tight controls on capital movements and possibly declare a bank holiday as the bank run accelerates and the demand for foreign exchange continues to rise sharply.
"As a result, we expect to see negative growth in an economy already hampered by growing isolationism," the international body said."
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