Mandatory sale of foreign currency proceeds of exporters to stabilize the exchange rate

On October 11, 2023, the President of Russia signed a decree “On the compulsory sale of foreign currency proceeds received by certain Russian exporters under foreign trade agreements (contracts)”.

The Presidential decree affects 43 groups of companies that belong to ferrous and non-ferrous metallurgy, grain production, timber and chemical industries, and fuel and energy complex industries. The decree contains a “specific list of exporters”, but the names of the companies are not given in the text.

The document introduces three main rules:
  1. Certain companies are obliged to repatriate and sell foreign currency proceeds on the Russian market within six months in amounts and within the timeframe set by the government. The Cabinet of Ministers plans to adopt a corresponding order within a twenty-four-hour period.
  2. Certain companies are obliged to submit to the Bank of Russia and Rosfinmonitoring indicative plans-schedules for the purchase and sale of foreign currency on the domestic market.
  3. The representatives of Rosfinmonitoring a will be sent to certain companies. Their tasks will include monitoring and ensuring compliance with currency regulation rules.