Putin cancels mandatory sale of half of exporters’ forex earnings

The Russian government commission will now determine the share of foreign exchange earnings that exporters are required to sell. Russian President Vladimir Putin has canceled by his decree the requirement for the mandatory sale of 50% of foreign exchange earnings, Report informs referring to Russian media.

The document “On Amendments to the Decree ‘On the Application of Special Economic Measures in Connection with the Unfriendly Actions of the United States of America and Adhering Foreign States’ and the Decree ‘On Additional Temporary Economic Measures to Ensure Financial Stability of the Russian Federation in the field of currency regulation’” have appeared on the website of legal information.

According to the document, resident participants in foreign economic activity are required to sell foreign currency “in the amount determined by the government commission for control over foreign investment in the Russian Federation, within the time period established by the board of directors of the Central Bank.”

On February 28, Putin signed a decree on special economic measures in the face of Western sanctions. Among these measures was a ban on Russians and Russian companies to credit foreign currency to their accounts abroad. In addition, exporters had to sell 80% of foreign exchange earnings. Later, the requirements were relaxed - exporters received the right to sell only 50% of foreign exchange earnings.