Alexey Vedev, Head of Financial Studies Department of the Gaidar Institute, told ”FederalPress” how Russians can intelligently allocate their finances under the European sanctions and the conflict between Russia and Ukraine.

Vladimir Putin signed an Executive Order prohibiting Russian legal entities and individuals from transferring foreign currency abroad to repay loans and deposit foreign currency to their accounts in other countries. At the same time, the Russian government developed a plan to save economy due to the introduction of European sanctions. Meanwhile, the dollar rate reached Rb 96.31and euro – Rb 117.41 on February 28 amid the military conflict between Russia and Ukraine.

The key mortgage rate of the Central Bank of Russia has increased to 20%. Alexey Vedev believes that actions of the Central Bank are justified and taken to contain panic.

"In my opinion, the Central Bank is doing the right thing now. We need to restrain people's hysteria by restricting trade opportunities, otherwise free trade will result in the fall of all assets. Russians need to wait for economic stability to see how different the new Russian financial system will be," said Alexey Vedev, formerly Russian Deputy Finance Minister in 2014-2017.

The expert believes that the best thing for Russians at this moment is to keep calm and avoid buying currency in a panic.

As for securities owned by Russians, Alexey Vedev recommends waiting a few days rather than making transactions.

"Now any movements can lead to a collapse. We should wait, at least for the results of negotiations between Ukraine and Russia," he concluded.