Ministry of Finance recommended allowing exporters to receive advance payments in cash

The Ministry of Finance proposes to provide Russian exporters with the opportunity to receive advance payments in cash from foreign counterparties. The ministry also wants to allow them to transfer cash imported into the country to accounts in Russian banks, both in rubles and in other foreign currencies. Document on the amendments is published on the portal of draft regulatory legal acts.

It follows from the document that the Ministry of Finance proposes to clarify the wording and allow the receipt of cash currency under contracts “providing for the transfer of goods and the provision of services.” These changes will give Russian companies the right to receive cash from non-residents under export contracts both after the transfer of goods to non-residents and the performance of work for them, and as an advance payment.

Under current Russian law, residents may receive cash from non-residents in foreign currency and rubles under contracts for goods transferred and work performed for them. Cash can also be received as a refund of an advance payment paid by them abroad for goods not imported into Russia. In addition, residents have the right to receive cash repayment of loans issued to non-residents.

The rules for cash settlements between residents and non-residents were developed by the Ministry of Finance at the end of 2022. Thus, the ministry wanted to avoid the risk of e-currency blocking abroad due to sanctions imposed on Russia.

More details – in the publication “Kommersant” “Cash currency is taken into circulation”.

Milena Kostereva