The Ministry of Finance of Russia announced yesterday that the subcommittee of the Russian Government Commission for the Control of Foreign Investments considered the issue of residents crediting funds in foreign currency to their accounts (deposits) in banks and other financial market organizations located outside the territory of the Russian Federation.
To implement additional temporary economic measures to ensure the financial stability of the Russian Federation, the following decisions were made:
1. Residents in Russia will be able to transfer funds in foreign currency to their accounts opened with foreign banks and other financial market organizations to finance the current operating activities of branches and representative offices. The amount of the transfer should not exceed the amount of funding for the previous year;
2. It is allowed to transfer to the accounts of citizens in foreign banks the currency received from non-residents in the form of wages, rent, coupons and dividends on securities and other interest payments;
3. Citizens will be able to transfer funds in foreign currency from their foreign accounts opened with foreign banks before March 1, 2022, to their other foreign accounts, information about which is disclosed to the Russian tax authorities.
Penalties for violation of Russian currency legislation can reach 75–100% of the transaction amount (under Article 15.25 of the Code of Administrative Offenses).
Earlier, from March 1, 2022, by decree of President Vladimir Putin, Russian companies and citizens were completely banned from crediting foreign currency to their accounts and deposits abroad. The ban does not apply to correspondent accounts. Measures were introduced to prevent the collapse of the ruble and the outflow of capital. Additionally, exporters were obliged to sell 80% of foreign exchange earnings in order to keep the currency in the country.
Residents are all citizens of Russia and foreigners permanently residing in the country. A person with a Russian passport who lives abroad for more than 183 days a year and has a residence permit (permit) in another country is recognized as a currency resident of Russia with a special status - most of the requirements of the law on currency control do not apply to him. The new presidential decree, unlike the law, does not distinguish between ordinary residents and residents with a special status.