Russia is temporarily halting the exit of foreign investments from the country, Prime Minister Mikhail Mishustin has announced on Tuesday.

The move comes in response to Russian capital being frozen abroad by the US, EU and their allies, RT reported.

"We hope that those who have invested in our country will be able to continue to do so in the future. I am sure that the sanctions pressure will eventually subside, and those who will not curtail their projects in our country, succumbing to the slogans of foreign politicians, will win," Mishustin said at a daily briefing on Russia's economic development.

Russian PM

Countering Ukraine-related sanctions

The Prime Minister added that the Russian government's working commission on countering Ukraine-related sanctions is moving into the mode of operational headquarters.

Mishustin said in the current sanctions situation, foreign entrepreneurs are forced to be guided not by economic factors, but by making decisions under political pressure.

Russian Prime Minister Mishustin
Russian Prime Minister Mishustin with President Vladimir Putin. Reuters

"To enable businesses to make informed decisions, a draft Presidential Decree has been prepared to introduce temporary restrictions on exiting Russian assets. As practice shows, it is easy to exit the market, but it is much more difficult to return to a place that is already densely occupied by competitors", the Russian PM said.

Moscow's response follows harsh economic penalties imposed on Russia over the past week by the US and its allies, that oppose the country's ongoing military intervention in Ukraine. The measures include disconnecting the largest Russian banks from the SWIFT payments system, freezing Russian assets and government reserves held abroad, as well as penalties against the country's Central Bank.

(With inputs from IANS)