Putin supported the extension of the moratorium on liability for businesses for currency violations

President Vladimir Putin supported the proposal to extend the moratorium on bringing to administrative responsibility for violations of currency legislation related to sanctions. He stated this at a meeting with representatives of “Business Russia” in the Kremlin.

“I fully agree, we have repeatedly discussed this both in the government and with the Central Bank,” Mr. Putin responded to the request of the meeting participants (quoted from TASS). “It is definitely necessary to extend the moratorium, and it is definitely absolutely necessary in no case to allow any retroactive payments from the business side. There should be an amnesty, I completely agree,” the president said and asked the government to “respond accordingly.”

“Life is completely different, we do not need the atavisms of the Soviet currency legislation, although stability and return (of foreign exchange earnings by exporters.— “b”) — it should be,” Vladimir Putin also said, noting that in this case, it may be necessary to use other mechanisms.

In December 2022 was extended a moratorium applied to residents of the Russian Federation (companies and citizens) on bringing to administrative responsibility for violations of currency legislation, if they are associated with sanctions. The moratorium was extended until December 31, 2023, previously it was set for the period from February 23 to December 31, 2022.

Article on Financial Stability Measures introduced into the law on counter-sanctions in June 2022 and provides for a special procedure for citizens and businesses to conduct transactions with persons from “unfriendly” countries, pay dividends to such persons and exchange control.

Failure by a resident to fulfill the obligation to fulfill or terminate obligations under a foreign trade agreement within the prescribed period, which is subject to the requirements of currency legislation, entails a warning or the imposition of an administrative fine on persons engaged in entrepreneurial activities without forming a legal entity, and legal entities in the amount of 5% to 30% the amount of money due to a resident from a non-resident; for officials – from 3% to 5% of the amount of funds, but not more than 30 thousand rubles.

Read more about currency control in the publication “b FM” “Currency controls ordered to soften”.

Maria Fedotova