Oreshkin supported the extension of the mandatory sale of foreign currency earnings by exporters

Russian Presidential Aide Maxim Oreshkin said he supports the extension until the end of 2024 of the requirement for the mandatory sale of foreign currency earnings by the largest exporters. According to him, this measure has shown its effectiveness, allowing to reduce volatility in the foreign exchange market.

“The government has initiated an extension of the sale of foreign currency earnings until the end of the year. The government made a very deep analysis of the consequences to which this led. <...> And obviously, the adoption of this decision led to the fact that excessive volatility disappeared from the companies’ operations, which was what they were counting on. Obviously, the measure is effective. Accordingly, I, for my part, will support this extension,” said Mr. Oreshkin (quoted from RIA Novosti). He emphasized that after Rosfinmonitoring received new powers, all information on the foreign exchange earnings of the largest exporting companies became available to the government.

January 23 First Deputy Prime Minister Andrei Belousov reportedthat the government positively assesses the effect of the requirement for the mandatory sale of foreign currency earnings by exporters, introduced in October, and will propose to extend these measures, which expire on April 30, until the end of 2024. Belousov noted that the measures introduced have shown their effectiveness and helped stabilize the situation on the domestic foreign exchange market. The Bank of Russia stated that they do not see any need to extend the mandatory sale of foreign currency earnings. In the Ministry of Finance, the position of Mr. Belousov supported. Russian President Vladimir Putin promised to correct the mechanism for returning foreign currency earnings by exporters if any problems arise with it.

Requirements for mandatory repatriation of foreign currency and sale of foreign currency proceeds act until April 30, 2024 for 43 groups of companies. The mechanism stipulates that Russian exporters must credit accounts in Russian banks with at least 80% of the currency received and sell at least 90% of the credited proceeds.

Read more in the article “Kommersant” “Guardians of Currency Earnings”.

Alexander Kislov