Participants of foreign economic activity are now allowed to receive payment for foreign trade contracts into their foreign accounts

On June 29, 2022, the government commission responsible for overseeing foreign investments in the Russian Federation introduced some relaxations in terms of Russian companies receiving funds as payment for goods and services received from foreign counterparties.

Thus, residents of the Russian Federation who are participants in foreign economic activity are now allowed to receive funds from foreign companies for foreign trade contracts. It is permissible to receive funds in foreign currency into the Russian company’s accounts opened outside the territory of the Russian Federation in banks and other banking organizations.

To receive funds in foreign currency to a foreign account, companies must meet the following conditions:

1. The foreign trade contract is concluded for the transfer of goods, provision of services to non-residents, performance of work for non-residents, transfer of intellectual property results, including exclusive rights to them.
2. Obligations under the contracts are provided for in foreign currency.
3. The goods transferred under the contracts must belong to one of the following categories (in accordance with the TN VED EAEU):

• • Fish and other seafood;
  • Salt (including table and denatured salt);
  • Mineral resources;
  • Wood and products of it, charcoal;
  • Natural or cultured pearls;
  • Precious and semi-precious stones;
  • Waste and scrap of precious metals, black metals of other metals;
  • Nickel and products made of it;
  • Metal ceramics, waste, and scrap from it.

After receiving funds in foreign currency under the contract, Russian companies are obliged to credit it to an account with a Russian bank no later than 120 business days from the day of crediting such foreign currency revenue to an account abroad and to sell it in the amount of not less than 80% in accordance with the Decree of the President of the Russian Federation dated February 28, 2022, No. 79.

It should be reminded that as of July 2022, there is a temporary procedure for conducting operations with cash currency of a legal entity. During the period of the temporary procedure, legal entities-residents and individual entrepreneurs-residents can receive cash US dollars, Japanese yen, British pounds, and euros in the amount of up to $5,000 US dollars, and only for expenses related to business trips abroad. In special cases, at the request of the bank to the regulator, this amount may be increased.