Putin allowed exporters to leave proceeds from intergovernmental agreements in foreign accounts

President Vladimir Putin has relaxed currency controls. His decree he allowed companies selling goods abroad under intergovernmental agreements to leave foreign exchange earnings in the accounts of foreign banks. The new rules come into force from the moment of publication.

According to the changes, legal entities that conclude contracts in accordance with intergovernmental agreements are granted the right to transfer foreign currency received from non-residents to the accounts of Russian co-executors in authorized banks and to the accounts of Russian co-executors located outside the Russian Federation.

Under intergovernmental agreements, in particular, gas and oil are being supplied to China via the Power of Siberia and to Turkey via the Blue Stream and Turkish Stream gas pipelines.

Previously, the Russian authorities allowed the use of cash to pay non-residents for goods already delivered, work performed, information transferred, and results of intellectual activity. Cash can be used to return advances paid by Russian importers in the event of a disruption in deliveries to the Russian Federation and to settle loans on loans granted to non-residents. Now the government has expanded the ability of exporters and importers to settle with their foreign partners using cash.

Read more in the publication “Kommersant” “White House Cashed in Advances”.

Maria Fedotova