Prohibiting national banks from opening branches in Ukraine and other unfriendly countries can disrupt their commercial and financial activities, as stated by Russian Federation Council member Sergey Kalashnikov.

The Federation Council called the proposal made by the Communist party to prohibit Russian banks from opening branches in Ukraine and other unfriendly countries senseless. According to the Deputy Chair of the Economic Committee of the Russian Duma Sergey Kalashnikov, "so we can build an iron curtain and live like North Korea."

A group of CPRF Deputies drafted the amendment regarding Russian banks, of which the RF has an equity capital of over 50%, which will prohibit the opening of branches in countries that have declared Russia as an aggressor, as well as those where Russian assets are systematically seized with regard to the YUKOS case.

"It’s a senseless measure; banks need to be able to carry out their financial and commercial activities including state-owned banks. If a bank opens a branch, it means that it will be profitable," Kalashnikov told RIA Novosti on Friday.

According to the Council member, there is no use in restricting state-owned banks in their commercial activities. "The only reason would be that the property can be confiscated, and assets frozen. This threat exists but why restrict state-owned banks when there are other shareholders as well," Kalashnikov said.

He believes that the proposal was poorly developed and cannot be used even as an advertising trick. "Let us set up the iron curtain as it was under the communists, and live like North Korea," he concluded.

  Russia, Economy of Russia

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