We draw your attention to the updating of legislation in the field of currency control

The changes were adopted by Decree of the President of the Russian Federation of February 28, 2022 No. 79 and by the Decree of March 01, 2022 No.81

(1) a ban is introduced on the implementation of transactions related to the provision by residents in favor of non-residents of foreign currency under loan agreements in Rubles and in foreign currency;

This change applies to both legal entities and individuals. Also, individuals are recognized as residents — citizens of the Russian Federation who have citizenship of a foreign state. At the moment, this restriction affects only transactions in foreign currency, not Rubles.

(2) a ban is introduced on the crediting of foreign currency by residents to their foreign accounts

According to clause b of part 3 of the Decree, from March 1, 2022, it is prohibited «for residents to credit foreign currency to their accounts (deposits) opened in banks and other financial market organizations located outside the territory of the Russian Federation, as well as to transfer funds without opening a bank account using electronic means of payment provided by foreign payment service providers». Thus, the ban applies to transfers in foreign currency made by a resident between his own accounts.

In particular, a resident is prohibited from transferring foreign currency from Russia and from other foreign accounts to

  1. own account opened in a foreign bank
  2. a foreign account opened with another organization of the financial market (for example, a brokerage account)
  3. foreign e-wallets (WebMoney, PayPal, etc.).

(3) an obligation is introduced to carry out the mandatory sale of 80% of the foreign currency due from non-residents under export foreign trade agreements.

The sale must be carried out no later than 3 (three) working days from the date of crediting such foreign currency.

Moreover, residents will also have to carry out the mandatory sale of foreign currency in the amount of 80 percent of the amount of foreign currency credited starting from January 1, 2022 to their accounts in authorized banks on the basis of export foreign trade contracts. Thus, today, on March 2, 2022, it is necessary to sell 80% of the foreign exchange earnings received from January 1, 2022.

Contracts with non-residents mean contracts under which goods are transferred to them, services are provided, work is performed, results of intellectual activity are transferred, including exclusive rights to them.

(4) It is prohibited to export from the Russian Federation cash foreign currency and (or) funds in foreign currency in an amount equivalent to 10 thousand US dollars and calculated at the official rate of the Central Bank of the Russian Federation, established on the basis of export.

(5) Transactions (operations) are prohibited, entailing the emergence of ownership of securities and real estate, carried out (performed) with persons of foreign states committing unfriendly actions