28 Jun 2022 12:04

Exporters may retain currency accumulated and not sold before mandatory sale zeroed out - Central Bank of Russia

MOSCOW. June 28 (Interfax) - Russian exporting companies may retain the foreign exchange earnings that they have accumulated and have not had time to sell prior to the cancellation of the mandatory sales, the Central Bank of Russia (CBR) has clarified in a statement posted on its website.

The requirement for the mandatory sale of 80% of forex earnings by exporters was introduced as per Russian presidential decree on February 28, the threshold was lowered to 50% in May, and the level was reset to zero on June 10.

Companies up to this moment could have accumulated significant amounts of foreign currency that had to be sold. Initially, export earnings had to be sold within three days from receipt to accounts, and then the authorities permitted companies two months starting in April. Consequently, all of exporters' earnings since the end of April to the beginning of June could theoretically remain unsold and only intended for sale as at the time that the requirement was cancelled.

Taking into account the decision of the government commission on the oversight of foreign investments in Russia, dated June 9, 2022, which reset the standard for the mandatory sale of export earnings on June 10, as worded "the mandatory sale of the specified foreign currency, including credited to accounts from February 28, 2022, to June 9 2022, and not sold, is not carried out," the CBR said in the explanation, dated June 27, 2022.