In Russia will cancel the repatriation of foreign exchange earnings

Requirements for the mandatory repatriation of foreign exchange earnings under foreign trade contracts will be gradually removed. The bill was prepared by the Ministry of Finance.

The return of foreign exchange earnings does not have an effect on reducing capital outflows and does not affect the stability of the exchange rate. At the same time, repatriation is a significant limitation on the development of foreign economic relations and prevents the buildup of Russian non-oil exports, the explanatory note to the bill says. In addition, this imposes additional costs on exporters.

Cancellation of repatriation will be carried out in stages – from January 1, 2021 it will be possible not to return up to 10%, then the bar will rise to 30%, and from 2025 it will be possible not to repatriate 100% of the contract value.

The need for liberalization of foreign exchange control is long overdue. Exporters attribute the procedures associated with it to the most significant administrative barriers in the field of foreign economic activity.

In order to mitigate the conditions of currency repatriation, at the end of March, the President signed a law abolishing criminal penalties for late returns or non-return of foreign currency earnings. The new bill is another step towards simplifying the terms of currency control. (Source: rambler)