Putin obliged exporters to report to the Central Bank about the foreign currency assets of foreign subsidiaries

Russian President Vladimir Putin signed a law obliging resident exporters to submit reports to the Central Bank on foreign currency assets and liabilities to non-residents, taking into account all subsidiaries, including foreign ones. The document was published on the official Internet portal legal information.

The changes will come into force on March 1, 2024. Requirements for the preparation and submission of reports by residents will be unified by the Central Bank in agreement with the Ministry of Finance and the Ministry of Economy. At the same time, the Central Bank is not obliged to publish a list of exporters providing such information.

Ministry of Finance explainedthat the changes proposed by the department will make it possible to more effectively assess the uniformity of the inflow and outflow of foreign currency and timely identify potential imbalances. Now the largest exporters must submit information to the Bank of Russia about the receipt of funds under foreign trade contracts in foreign currency with payment in favor of non-residents. We are talking about a legal entity, and not about the entire group.

The law, signed by Vladimir Putin, also obliges an international group of companies with foreign subsidiaries to notify tax authorities about the opening/closing of accounts and deposits abroad and to submit reports on the flow of funds on these accounts.

From October 16, the largest exporters (43 groups of companies) were obliged to repatriate and sell foreign currency earnings. At least 80% must be credited to the account (of this amount, exporters must sell 90% of foreign exchange earnings on the market within two weeks). Companies must sell more than 50% of the export contract within 30 days.

Read more about the new law in the Kommersant article. “Extraterritorial exchange control”.

Lusine Balasyan