The government obliged foreign subsidiaries of exporters to sell foreign currency earnings

Russian exporters who are required to sell a portion of foreign exchange earnings must ensure that their subsidiaries comply with this requirement. This should from a government decree published on the official portal of legal acts.

According to the document, we are also talking about subsidiaries created under the laws of foreign states and located outside of Russia.

The government decree is valid until April 30, 2024. The Ministry of Economic Development is obliged to notify exporters within three days of their inclusion in the list approved by presidential decree. Earlier, presidential press secretary Dmitry Peskov reportedthat the decree itself and the list of exporters obliged to sell currency will not be published.

On October 11, President Vladimir Putin signed a decree on the mandatory sale of proceeds in foreign currency received by individual Russian exporters under foreign trade agreements. The goals of the innovation are to create long-term conditions for increasing the transparency and predictability of the foreign exchange market and reduce the possibility of currency speculation.

The decree defines a specific list of 43 groups of companies – the largest exporters, related to the sectors of the fuel and energy complex, ferrous and non-ferrous metallurgy, chemical and forestry industries, grain farming, which will be affected by these measures. According to the document, mandatory repatriation and sale of foreign currency earnings on the Russian market is introduced for these companies for six months.

Later government explainedthat exporters will have to sell at least 90% of foreign exchange earnings credited to their accounts in Russian banks. From October 16, individual Russian exporters will be required to deposit into their domestic bank accounts at least 80% of all foreign currency received under their export contracts. These provisions are enshrined in the Cabinet resolution.