UPDATE: Overview of legislative changes in Russia

Over the past 3 weeks, there have been many changes regarding transactions with foreign counterparties. We have prepared a brief overview of the new rules:

• Residents are required to sell 80% of currency earnings received under foreign trade contracts within 3 working days from the date of crediting to the account.
• Significant restrictions have been established on certain types of transactions:

1) granting ruble credits and loans to counterparties from unfriendly countries (having sanctioned Russia), as well as counterparties controlled by them;
2) provision of foreign currency loans by residents in favor of non-residents;
3) transactions with counterparties from unfriendly countries in respect of securities and real estate;
4) crediting foreign currency to residents’ accounts/deposits outside the Russian Federation;
5) transfer of funds to foreign electronic wallets;
6) repayment of foreign currency credits and loans to creditors of unfriendly countries in the amount of more than 10 million rubles per month.

• Restrictions on the export of certain groups of goods to certain countries have also been introduced.
• It is prohibited to export from Russia cash in foreign currency and (or) monetary instruments in foreign currency in an amount exceeding the equivalent of 10 thousand US dollars.

Please note that the following operations are still available:

- Concluding contracts (goods purchase / services provision) with foreign contractors, including representatives of European countries.
- Payments to foreign counterparties for goods and services, including payments to European countries and in foreign currency (excluding sanctioned banks).
- Goods import to Russia (excluding sanctioned goods).
- Converting rubles into foreign currency.
- Repayment of foreign currency credits and loans to foreign creditors in the amount of up to 10 million rubles per month.
- Return of capital surplus, payment of dividends (both in rubles and in foreign currency).
- Export from Russia of cash in foreign currency in an amount not exceeding the equivalent of 10 thousand US dollars.

Bellerage specialists are always ready to advise you on emerging issues (russia@bellerage.com).