On October 19, 2023, the Russian Government published a Resolution on measures to implement Presidential Decree No. 771 of October 11, 2023 on the mandatory sale of foreign currency revenue (the “Decree”). The Decree was signed on October 11, 2023 and provides for the return for 6 months for a number of Russian exporting companies of the mandatory repatriation of foreign currency proceeds and their sale in the Russian Federation. At the same time, both the Decree itself and the list of exporting companies to which it applies have not been published in the public domain.

According to the published Resolution of the Government of the Russian Federation exporters are obliged from October 16, 2023 within 60 days from the date of receipt of funds to credit to their accounts in Russian banks not less than 80% of all foreign currency received in accordance with the terms of their export contracts. They are also required to sell on the domestic market within two weeks at least 90% of foreign currency proceeds credited to their accounts with Russian banks (but at least 50% of the funds received – regardless of the currency – under each export contract, within no more than 30 days of receipt).

The Resolution also grants the Government Commission for Control over Foreign Investments in the Russian Federation the right to issue permits to certain companies not to make compulsory sales of foreign currency on Russia’s domestic currency market.

The Resolution is valid until April 30, 2024.

Link: http://publication.pravo.gov.ru/document/0001202310190051