Russia's MinFin proposes to lift restriction on cash payments for personal purchases abroad

MOSCOW. Dec 2 (Interfax) - Russia's Finance Ministry has drafted legal amendments to lift the restriction on cash forex and ruble payments between resident Russian individuals and nonresidents for goods, work, services, information and the results of intellectual activities, including exclusive rights to them, that are purchased for personal, family, household and other needs not related to the business or other income-generating activities of such individuals while they are outside of Russia.

The ministry has posted the bill to amend Article 14 of the federal law on currency regulation and control on the official website for draft legislation. The current version of the law (No. 173-FZ) prohibits settlements between resident Russian individuals and nonresidents made without the use of accounts/deposits at Russian or foreign banks.

With other countries having imposed sanctions on Russia's banking system, Russian resident individuals often cannot make payments in other countries using bank cards issued by Russian lenders, a memo attached to the bill said. This is why the bill was drafted.

In order to exclude the possibility of resident individuals who conducted such forex transactions before the proposed changes take effect being held liable under Part 1, Article 15.25 of Russia's Code of Administrative Offences, the bill allows for them to be applied retroactively.

However, the ministry proposes to maintain the ban on cash forex transactions between resident individuals and nonresidents made within Russia since there are no problems making cashless payments.