A percentage was assigned to revenue – Kommersant

The White House has determined the parameters of mandatory repatriation and subsequent sale of foreign currency earnings by individual exporters in accordance with the previously adopted decree of Vladimir Putin. It has been established that from October 16, exporters from a list closed by the authorities will be required to credit their accounts in Russian banks with at least 80% of the currency received under export contracts, in order to then sell at least 90% of these amounts on the domestic market.

The government on Friday decided on the parameters of a temporarily refundable mechanism for the mandatory sale of part of foreign currency earnings. We remind you that October 11 became known on the signing by the President of a decree introducing such a measure (see “Kommersant” dated October 11). The document is confidential and not published. It was only reported that mandatory repatriation and sale of the majority of foreign currency earnings is being introduced for a six-month period for 43 groups of companies in the fuel and energy complex, ferrous and non-ferrous metallurgy, chemical and forestry industries, and grain farming. The list of organizations is not disclosed, however, according to Kommersant, it includes companies whose share of exports in revenue exceeds 60% (see “Kommersant” dated October 13).

As the government staff told reporters, according to the decree adopted as a follow-up to the decree (it is also not published), from October 16, exporters subject to the decree must credit their accounts in Russian banks with at least 80% of the foreign currency they received under export contracts. This must be done within 60 days from the date of receipt of funds. Then, within two weeks (but no more than 30 days after receiving the funds), it is necessary to sell at least 90% of the amounts credited in this way on the domestic market.

Moreover, the volume of such sales must be at least half of the funds received in accordance with each export contract.

Let us recall that the presidential decree obliges exporters to submit indicative plans and schedules for the purchase and sale of foreign currency to the Central Bank and Rosfinmonitoring. In addition, authorized representatives of financial intelligence are sent to individual companies, whose tasks include monitoring compliance with currency regulation rules.

All these measures are positioned as a tool to increase the predictability of the foreign exchange market. The Ministry of Finance stated that they will provide “greater understanding in the formation of foreign exchange earnings of key Russian exporters, taking into account the changed conditions of foreign trade.” The Central Bank pointed out that the introduction of the mandatory sale of foreign currency earnings could smooth out short-term fluctuations in the ruble – while companies would still have the opportunity to immediately “buy back” the sold currency. This will increase trading turnover, but the rate will still be determined by fundamental factors. Among other objectives of the innovation, Kommersant’s interlocutors also named the authorities’ desire to reduce the withdrawal of capital through non-return of foreign currency earnings.

Evgenia Kryuchkova