Russia creates laws against effects of economic sanctions and ruble fall

The Russian parliament on Friday adopted a package of laws aimed at countering the effects of Western sanctions on the country’s economy after the invasion of Ukraine.

The text, accessible on the Duma’s Internet portal, aims to “increase the stability of the Russian economy and protect citizens against sanctions”.

Western countries have taken unprecedented measures against Russia, causing a precipitous fall in the ruble and a massive flight of foreign companies doing business in Russia, among other effects.

The law gives the government the ability to increase pensions and the minimum wage “if necessary”.

It also includes the possibility of a moratorium on inspections of small and medium-sized companies in 2022 and until 2024 for IT companies.

The text also incorporates a simplified system for purchasing certain drugs, the list of which has been expanded.

Another measure is a simplified “buyback” procedure, that is, the purchase of its own shares by a company.

As the share price of Russian companies has dropped sharply in recent days, this would allow companies to buy them at a low price.

The law suspends the payment of debts to citizens and small and medium-sized companies in 2022, a measure that had already been applied at the beginning of the coronavirus pandemic.

Finally, it plans to extend a capital amnesty that has been in place for several years and that allows Russians to repatriate property and capital from abroad without being subject to fines or legal proceedings.

When asked about the matter at the daily press conference, Kremlin spokesman Dmitry Peskov declared that the Russian economy “is in an aggressive environment”.

“The economy concerns all of us, it concerns the well-being of all citizens. There are blows to our economy that must be cushioned and minimized. And that’s what the government and the president are focusing on right now,” he explained.