Legal analytics

Experts from VEGAS LEX have visualised foreign exchange restrictions that are regularly introduced since the end of February of this year as special economic measures.

The graphic format makes it possible to solve two real-life problems:

• to check restrictions and alternatives available for a specific transaction;

• to take a comprehensive look at the restrictions and opportunities for a specific entity.

Bird’s-eye view at the entire system of restrictions will reduce the business’s regulatory risks. It is especially useful when the requirements for foreign exchange transactions are changing almost daily.

Below are the latest innovations that came into force in the first half of July 2022 and are reflected in the proposed material:

• On 8 July were issued:

— a decision of the regulator which allows Russian companies, under certain conditions, to repay credits and loans in foreign currency to foreign banks;

— clarifications of the Bank of Russia on the procedure for fulfilling obligations on syndicated loans and Eurobonds;

• On 5 July, the President of Russia:

— banned residents from transferring funds received as dividends or allocated profits of Russian companies to foreign accounts;

— allowed the participants of FEA to transfer the proceeds from foreign trade activities to foreign accounts;

— established the procedure for fulfilling obligations on syndicated loans and Eurobonds issued by foreign companies;

• On 4 July, regulatory decisions were published, according to which resident individuals are allowed under certain conditions:

— to receive repayment of loans from non-residents to their foreign accounts;

— to issue loans in foreign currency to non-residents;

— to transfer funds to their foreign accounts for the maintenance of foreign property or to pay for medical services.

The latest regulatory changes analysis is always available on our website.

Read the review in VEGAS LEX’s latest publication: Anti-crisis measures. Limits set on foreign exchange transactions