Russian exporters are now obliged to sell their foreign currency revenue

The President of Russia signed Executive Order “On implementing mandatory sale of revenue in a foreign currency received by certain Russian exporters under foreign trade contracts (agreements)”. This document has not been published yet; its key provisions were related by the Government of the Russian Federation. This measure is reportedly aimed at stabilizing the foreign currency exchange rate.

The document introduces three key novelties.

Firstly, individual companies will be obliged to repatriate and sell their foreign currency revenue in the Russian market for a term of 6 months. The amounts and timeframes will be stipulated by the Government in a separate decree.

Secondly, individual companies will be obliged to submit indicative schedules of buying and selling foreign currency in the domestic market to the Bank of Russia and the Federal Financial Monitoring Service (Rosfinmonitoring).

Thirdly, authorized representatives of Rosfinmonitoring will be assigned to individual companies; their task will include monitoring and enforcing foreign exchange regulation rules.

The President’s executive order stipulates the specific list of exporters that will be affected by these measures. It consists of 43 groups from the fuel and energy sector, ferrous and non-ferrous metallurgy, chemical and timber industry, as well as grain farming.