Russian exporters might be allowed not to repatriate forex needed to meet obligations

MOSCOW. Dec 18 (Interfax) - The Russian government commission for foreign investment will be able to grant permission to exporters, who by presidential decree must sell forex revenue, and their subsidiaries not to transfer forex earned on foreign trade contracts to authorized banks in the amount they need to meet claims in foreign currency.

The government has issued a resolution approving these changes to the rules for permission to be granted by the commission.

At present, the commission can grant permission to the largest exporters and their subsidiaries not to sell forex revenue in the amount equal to the amount used to meet claims in foreign currency, as well as permission not to transfer to authorized banks and not sell forex revenue from foreign trade contracts that were more than 50% paid in rubles.

The Russian government issued the decree on implementing the mandatory repatriation and sale of part of the forex earnings on the part of exporters in October 2023 for a period of six months. The government later extended the decree until April 30, 2025. Exporters were initially required to credit at least 80% of foreign currency received under foreign trade contracts to their accounts in authorized banks and sell 90% of the amount on the domestic market. The government reduced the repatriation threshold from 80% to 60% at the end of June and sharply to 40% in July, meaning that exporters must sell 36% of their forex earnings on the market. Meantime, there was initially a clause that stipulated that at least 50% of the funds received under each export contract must be sold within 30 days from the date of receipt irrespective of the currency. The government lowered threshold to 25% in October this year.