Relaxation in currency control when selling foreign exchange earnings

LEGAL DIGEST, NEWS \ 20.05.2022

The Government Commission on Monitoring Foreign Investment in the Russian Federation has decided to relax currency control when selling foreign currency.

By September 1, 2022, residents participating in foreign economic activity (FEA) should carry out a mandatory sale of foreign currency in the amount of 0% (previously this share was 80%) of the total amount of foreign exchange earnings. The specified norm can be applied if the following conditions are met simultaneously:

• a resident is at the same time a party to export and import contracts concluded with the same non-resident or with different non-residents. At the same time, one contract may contain both export and import conditions;
• export and import types of contracts, payment for which is made in foreign currency, are registered with one authorized bank and settlements on them are also carried out through accounts opened in one bank;
• the write-off of foreign currency in favour of a non-resident under an import contract is carried out from the resident’s transit currency account, to which currency was previously accrued under the export contract, in the amount of the sums of upcoming payments for the fulfilment of obligations under the import contract.

The amendments apply to Russian companies that:

• carry out transactions with foreign organizations on the basis of foreign economic contracts;
• sale goods, provide services to foreign companies and perform works for them;
• transfer the results of intellectual activity (including exclusive rights to them) to foreign organizations.

The term of sale of foreign currency earnings is not later than 60 working days from the date of its transfer to transit currency accounts in authorized banks.

In order to use the designated permit, residents are required to send to the bank a number of necessary documents associated with transactions under foreign economic contracts. It is recommended to specify the list of such documents in an authorized bank.

In the matters of the implementation of relevant transactions, please contact Acsour experts.