Overview of significant news that affects the work of companies with foreign capital in the Russian Federation

1. Starting June 6, exporters are allowed to credit foreign currency to their accounts abroad. This decision was made by the government commission for the control of foreign investment in the Russian Federation

Residents of the Russian Federation received the right to credit their accounts in foreign banks with foreign exchange earnings received from non-residents under foreign trade agreements (contracts) that provide for the transfer of goods, the provision of services, the performance of work, the results of intellectual activity, including exclusive rights to them, to non-residents. This possibility implies compliance with the conditions for the subsequent repatriation of funds to the Russian Federation and the subsequent sale of export earnings in the amount determined by Decree of the President of the Russian Federation No. 79 dated February 28, 2022.

2. The Central Bank of Russia allowed residents of the Russian Federation to transfer no more than $150,000 or the equivalent in another foreign currency from their account in a Russian bank to their foreign account or to another person, for a month starting June 8. Thresholds for transferring funds abroad for individuals have been raised | Bank of Russia (cbr.ru)

Non-residents from “friendly countries” can transfer the same amount to foreign accounts of non-residents from friendly countries. Previously, the limit was $50,000.

For a month, residents and non-residents from friendly countries will be able to transfer no more than $10,000 or the equivalent in another foreign currency through companies that provide money transfer services without opening an account (the previous threshold was $5,000).

For all non-residents, the possibility of transferring funds abroad, which they receive in the form of a salary, remains.

The ban on transfers made by legal entities from countries that support sanctions abroad, remains in effect. The restrictions are valid until September 30, 2022.

Transfer amounts are calculated at the official exchange rate set by the Bank of Russia on the date of the transfer instruction.

3. The Ministry of Finance of the Russian Federation published a notice, according to which the requirement for the mandatory sale of foreign exchange earnings in the amount of 50% for Russian exporters was canceled

Decree of the President of the Russian Federation No. 360 dated June 9, 2022 abolished the requirement for the mandatory sale of foreign currency in the amount of 50%, and the right to determine the amount of the mandatory sale of foreign currency was transferred to the Government Commission for Control over Foreign Investments in the Russian Federation.

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