23 Jan 2024 10:47

Russian govt proposes to extend requirement for exporters to sell forex revenue until end of year

MOSCOW. Jan 23 (Interfax) - The issue of whether the requirement for the repatriation and sale of foreign currency earnings by the biggest Russian exporters will be extended has practically been withdrawn from the agenda months before a presidential decree on the matter is due to lapse.

The decree is currently valid until the end of April this year.

"The government acknowledges the effectiveness of the requirement introduced in October 2023 by presidential decree for the repatriation of foreign currency and the sale of foreign currency revenue under foreign trade contracts by selected major exporters," the government press service said on Tuesday.

The measures have proven to be effective and will be proposed for extension, said First Deputy Prime Minister Andrei Belousov.

They were designed to stabilize the exchange rate and were substantiated by data about low average daily sales of export revenue by companies. According to the document, the measures are temporary - they currently last until April 30, 2024. Given the ongoing results, the measures in force in keeping with the presidential decree will be proposed for extension, until the end of 2024, the statement said.

"The measures have proven to be effective and have helped stabilize the domestic currency market situation by achieving a sufficient level of foreign exchange liquidity. Today it can be noted that, according to available data, exporters are on the whole complying with the presidential decree. This has made it possible to cover the shortage of foreign currency required by importers to maintain supplies of goods to our country. A proposal is currently being drafted to extend these measures until the end of this year," the government quotes Belousov as saying.

The statement gives data on the exchange rate against the backdrop of the introduction of a requirement to sell forex revenue. "The ruble exchange rate strengthened noticeably in October, by 4.5% month-on-month, in the first month of the positive ruble trend. As of today, the national currency has strengthened to about 90 rubles per dollar from the October peak of more than 101 rubles/$1," it said.