Currency transactions will be simplified for exporters

Mar, 11 2020

The Parliament has adopted a draft law in first reading extending the list of cases when residents will have right not to transfer currency to their bank accounts by setting off counterclaims for liabilities arising out from foreign trade agreements or contracts.

Setting off counterclaims occurs when liability is settled by another counter liability. The principal obligation is terminated after being set off.

According to the current legislation, a resident is bound to receive foreign currency or rubles from non-residents to his bank accounts in authorized banks arising from export of goods, works, services, information and results of intellectual activity, as well as other funds in accordance with terms of loan agreements.

The measures proposed by draft law will reduce the additional financial costs of medium-sized and large companies connected with the absence of ability to set off counterclaims. It is explained by the fact that companies are forced to draw up documentation for authorized banks to deposit currency, and then transfer money. As the result, monetary assets which are necessary to carry out a banking operation are withdrawn from circulation for a few days. In addition, banks impose a commission on each operation, which results in additional financial costs.

The amendments proposed will reduce the Russian service exporters’ administrative burden and reduce their overhead costs connected with carrying out currency transactions for the corresponding foreign trade contracts.