Challenges Faced by Businesses with Mandatory Sale of Export Proceeds under New Mechanism

Businesses have encountered difficulties with the mandatory sale of export proceeds under a new mechanism launched in October by presidential decree. The key question is how to deal with rubles that come from buyers to foreign accounts.

Now the rules are interpreted in such a way that exporters need to exchange at least part of such income for foreign currency abroad, then transfer it to Russian banks and after that sell it for rubles on the domestic market. Four sources close to the largest companies told Vedomosti about this, as did an interlocutor close to the Russian Union of Industrialists and Entrepreneurs (RSPP), as well as a high-ranking federal official familiar with the situation. This approach, on the one hand, means double conversion – there is a “circulation of rubles,” explained one of the interlocutors close to the business. On the other hand, it creates additional difficulties for sanctioned companies that are limited in the use of foreign currency, business representatives complain.

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2023-11-13 21:23:49