After being hit by recent western financial sanctions, Russia has hit back releasing a list of 50 countries that have taken “unfriendly actions” after its invasion of Ukraine.
One of the countries on that list is Australia, which has meant that organisations such as Australia’s Future Fund are frantically trying to divest $200 million invested in the Russian economy.
On top of this Australian superannuation funds and the NSW government who also have holdings in Russian assets are looking at ways to exit the market.
Any future business dealings from Australia to Russia will require special government authorisation from the Commission for Control over Foreign Investments.
The change in rules means that Russian citizens, companies and even the state itself are able to pay any foreign creditors who’s country is on this list in Roubles.
Although the new Russian government order is only temporary at this stage and applies solely to payments exceeding $10 million Roubles. (Approx $72,202)
In retaliation Scott Morrison has warned that sanctions against Russia would continue to be ramped up.
