BarentsNews.com

On 9th of July 2003 the Federal Law No.116-FZ of 7th of July 2003 “On making changes to Article 6 of the Law of the Russian Federation “On Currency Regulation and Currency Control” came into force (the “Law No.116-FZ”).

According to the Law No.116-FZ Russian residents (legal entities registered in Russia) are required to sell their foreign currency earnings on the internal currency market in the volume established by the Central Bank of Russia.

The Law No.116-FZ points that the volume can’t be more than 30 per cent of the foreign currency earnings. This is a significant novel because previously the volume of obligatory sale of currency earnings was established by the Law “On Currency Regulation and Currency Control” and constituted 50 per cent of foreign currency earnings.

In compliance with the new law the Central Bank issued Direction of 9 July 2003 No. 1304-Y, that came in force on 10 July 2003. By this Direction the Central Bank established the volume of obligatory sale in the amount of 25 per cent of foreign currency earnings.

Obligatory sale of foreign currency earnings shall be carried out through the authorized banks, i.e. banks having licence of the Central Bank for currency transactions, at the market exchange rate on the internal Russian currency market not later than 7 calendar days after accumulation of such earnings.

Sergei Mashkarenko.
Lawyer
Tel/Fax: +7812-174-59-50