Russia extends currency control measure banning withdrawing money via contribution to capital of non-resident company

MOSCOW. Nov 14 (Interfax) - Russia has re-extended one of the measures comprising the currency control system implemented in 2022 in response to sanctions, namely the ban on Russian residents completing transactions to pay for a stake, deposit, stake in the authorized charter capital or contributed capital, or share fund in a cooperative of non-resident legal entities without permission from the Central Bank of Russia.

The current measure expires on December 31, and a presidential decree on November 14 extended the ban until the end of 2025.

Presidential decree No. 126 "On additional temporary economic measures to ensure the financial stability of the Russian Federation in the area of currency regulation" has been amended.

The ban on contributing to non-residents under a simple partnership agreement with investment in the form of capital investments without permission from the Central Bank has been extended for one year.

The Central Bank relaxed some of the rules in 2022, thus it is no longer necessary to obtain individual permission from the regulator to pay for shares, deposits, and units in the property of non-resident organizations regardless of the location of the recipient of funds if payments are remitted in rubles or the currency of a friendly country. If the transaction is in the foreign currency of an unfriendly country, then it is limited to the equivalent of 15 million rubles at the official exchange rate of the Central Bank regardless of the recipient's location.