Russian Exporter Currency Plan May Signal Capital Controls

Russia is urging exporters such as OAO Rosneft to convert more of their foreign revenue into rubles, a move that Sputnik Asset Management and Bank of America Corp. say is tantamount to capital controls.

The government is appealing to state-controlled exporters to help limit the ruble’s tumble, Finance Minister Anton Siluanov told reporters in Moscow today. His comments came after President Vladimir Putin, who said last month he has no plans to limit the flow of capital, asked the government and central bank to work together to defend the currency, promising “harsh” measures against speculators.