The President of the Russian Federation signed a Decree establishing restrictions on the conduct of a number of foreign currency transactions by organizations, including with foreign currency in cash. For more information about the implementation of these operations, see the text of the article below.
Restriction of transactions with contractors
Starting from March 1, 2022, the Central Bank of the Russian Federation introduced a prohibition on:
These procedures can be performed only after obtaining permission from the Government Commission for the Control of Foreign Investments in the Russian Federation.
At the same time, foreign currency operations for residents to receive foreign currency when non-residents fulfill their obligations under loan agreements previously provided by residents to non-residents are not limited (including operations for non-residents to repay a loan, non-residents to pay interest amounts and (or) punitive sanctions on such a loan). Also, residents are not limited to fulfilling obligations to non-residents under the loan agreement, which provides for the provision of such a loan by a non-resident to a resident.
Starting from March 2, 2022, a special procedure will be introduced for the implementation of the following types of transactions with foreign persons – residents of foreign states who commit non-amicable actions against Russia:
The specifics of the application of restrictions related to securities and real estate are reflected in more detail in sub-clauses 1.5 and 1.11 of the Explanations No. 2-OR of the Central Bank of the Russian Federation dated March 18, 2022.
Restriction with cash foreign currency
Starting from March 10 to September 10, 2022, organizations will be able to receive currency in cash only to pay for expenses on foreign business trips. The amount that can be obtained is $5,000.
At the same time, during the period of restrictions on currency withdrawal, organizations can withdraw:
The restrictions imposed apply to both Russian companies and companies that are not residents of the Russian Federation. They are also prohibited from withdrawing cash in US dollars, Japanese yen, pounds sterling and euros. Residents and non-residents will be able to receive the other currencies from their accounts without restrictions at the market rate on the day of issue.
If, when sending an employee on a business trip, an amount of more than 5,000 US dollars is required, then it is necessary to apply to the Central Bank of the Russian Federation with a request for the issuance of a larger amount, justification for the need to receive foreign currency cash and supporting documents.
Apart from this, individuals are prohibited from exporting foreign currency in cash from the Russian Federation in an amount exceeding 10,000 US dollars and calculated at the official exchange rate of the Central Bank of the Russian Federation on the date of export.
Acsour recommends to comply with the established limits and conditions in the case of sending employees on a business trip. We will help you to draw up all the necessary documents for sending employees on a business trip and perform the appropriate operations to avoid risks.