a. Foreign Currency TransactionsForeign companies are allowed to open foreign currency accounts in Russian banks to conduct cross-border transactions. However, all foreign currency payments for goods and services must be made through authorized Russian banks that comply with currency control regulations.
b. Currency Reporting RequirementsForeign companies must report certain foreign exchange transactions to the Central Bank of Russia. This includes:
- Import/Export transactions: Reporting payments for goods and services imported or exported to Russia.
- Loans and Credits: Loans and credit agreements must be registered, and payments for cross-border loans should be reported.
- Equity and Dividend Payments: Payments related to investments, capital contributions, and dividends from foreign entities must be reported.
These reports must generally be submitted quarterly or annually, depending on the nature of the transaction.
c. Payment Deadlines and PenaltiesFailure to meet the required deadlines for payment settlements or currency reporting can result in fines and penalties. Companies must ensure that cross-border payments are completed within 90 days of the transaction date, or they could face administrative fines or restrictions on their transactions. Timely and accurate reporting to the Central Bank is critical to avoid financial penalties.