Liberalisation of currency regulations

18/08/2022
Liberalisation of currency regulations

On 8 August 2022, the President of the Russian Federation issued Decree No. 529, which almost completely abolishes repatriation requirements.

As a reminder, until recently, repatriation requirements continued to apply in full for:

  • advances paid by residents to non-residents under foreign trade contracts for goods (works or services), if the respective goods (works or services) were not delivered on time;
  • receipt of currency revenues to accounts in authorized banks under foreign trade contracts on transfer of certain commodities to non-residents under certain HS codes;
  • repayment of loans under which the resident provided the non-resident with money in roubles or foreign currency. 

The Decree effectively abolishes these requirements. Residents may credit funds received from non-residents under foreign trade contracts and loan agreements to their foreign accounts and terminate obligations in another permitted way - by set-off or novation. However, there is legal uncertainty as to the priority of the Presidential Decree and the current regulations on currency control and administrative offences, which formally remain in force.

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