The Russian Ministry of Finance is evaluating a new mechanism that would require exporters to repatriate their earnings in foreign currency. Ivan Chebeskov, who heads the financial policy department, noted that several design options are under consideration, including how to set interest rates and which currencies would be acceptable for mandatory repatriation. The publication covers this topic by outlining the proposed framework and the possible performance of such a policy.
Earlier, a similar idea was voiced by the Business Russia association in July. A stricter measure had already been in place in spring 2022: the mandatory sale of foreign currency within the domestic market. Analysts believe that forcing repatriation could provide temporary support to the ruble’s value, though the effect might not be lasting. Sanctions continue to complicate cross-border transfers for many firms, creating additional challenges for moving funds back to Russia.
At the moment, the Ministry of Finance adopts a tougher stance on foreign exchange control than the Central Bank of Russia. The issue is under discussion, with no final consensus reached yet. The ministry is exploring a repatriation mechanism for exporters’ earnings and is weighing various options, including different interest rates and the currencies permitted for mandatory repayments.
The currency regulation debate re-emerged in August when the dollar rate surpassed 100 rubles. On August 15, the Central Bank unexpectedly raised the key interest rate to 12 percent, which supported the ruble’s strength at that time.
Previously, the Russian Federation had a unified personal income tax framework applicable to remote workers.