How to pay off counterparties in 2025

Under the constraints of currency legislation, many companies face difficulties in settling payments with foreign partners. However, halting imports or exports is not an option, so companies are seeking alternative legal and low-risk methods for mutual settlements.

1. Barter Transactions 

Barter is the exchange of goods or services without the use of money. This method is suitable for companies that can offer mutually beneficial terms. 

In barter agreements, it is essential to clearly specify all details: 

• Product Details: Describe the characteristics, quality, and quantity of the goods. 
• Equivalence of Value: The price of the exchanged goods must be equivalent. The valuation method (market prices, comparative analysis) should also be documented. 
• Absence of Monetary Obligations: The transaction is limited solely to the exchange of goods. 
• Delivery Terms: Include timelines, responsibility for transportation, the moment of transfer of ownership, and risk of loss. 
• Quality of Goods: Specify the procedure for quality inspection, deadlines for identifying defects, and the process for rectifying them. 
• Jurisdiction for Disputes: Choose a neutral jurisdiction and language for legal proceedings in case of disputes. 

2. Digital Financial Assets (DFA) 

DFAs are digital equivalents of securities that can be used for settlements with foreign partners. They exist in electronic form and are regulated by Russian authorities such as Rosfinmonitoring and the Central Bank. 

DFAs are suitable for transferring rights to intellectual property, goods, or services. Using DFAs minimizes risks, as any information about beneficiaries may remain undisclosed. 

However, DFAs are not suitable for transactions involving real estate or other assets requiring state registration and government commission approval. 

3. Transport and Forwarding Contracts 

This tool allows for regulating the terms of cargo transportation and including additional obligations (e.g., payments on behalf of the client). Such contracts have long been used in the market and are well-understood by participants. Additionally, there is always the possibility of including additional services, such as customs clearance or forwarding. 

4. Mutual Settlement Offsetting 

Offsetting allows for the termination of obligations between parties without actual money transfers. However, it is important to note that: 

• Both parties must have homogeneous claims (e.g., mutual debts). 
• It is necessary to ensure that the legislation of the respective countries permits offsetting. 
• A complete set of documents confirming the obligations (contracts, invoices, delivery notes) must be collected. 
• Offsetting is not suitable for all types of businesses, and when using it, it is crucial to understand currency control requirements to avoid issues with currency repatriation. 

5. Payment Agents 

Payment agents help organize settlements with foreign counterparties, speeding up financial processes and minimizing risks. They facilitate quick transactions, work with banks in any country, and offer additional services such as account management and full control over settlements. 

Features of Settlements with Chinese Companies

Collaboration with Chinese partners is a key focus for many Russian companies, especially amid changing supply chains. The Chinese tax system is complex, and a lack of understanding of its nuances can lead to increased contract costs. For example, the VAT rate on exported goods is 0%, but only if certain requirements are met. If export is not confirmed, the rate may increase. For services, the VAT rate can reach 6%, which must also be factored into calculations. 

When concluding contracts with Chinese companies, it is important to consider local legal norms and business traditions. It is recommended to draft contracts in both Chinese and Russian (or English) to avoid misunderstandings. Specify the jurisdiction for dispute resolution, often choosing Hong Kong or Singapore as neutral territories. Many banks do not process payments to certain Chinese provinces, so it is also important to know with whom and through which bank the transaction is planned.