President Vladimir Putin canceled the requirement for the compulsory sale of 50 percent of export revenues in foreign currency. Exporters still must convert proceeds, but the exact share is now set by a government commission that oversees foreign investment. The timing of the sale is determined by the Central Bank Board of Directors. The presidential decree notes that residents engaged in foreign economic activity must exchange foreign currency in the amount specified by the government commission monitoring foreign investments in the Russian Federation within the period determined by the Central Bank board.
On June 6 a government commission permitted exporters to credit earnings to foreign bank accounts. This right applies to Russian companies that have entered into foreign trade agreements with foreign counterparties. The Ministry of Finance explained that this arrangement remains subject to conditions for the subsequent return of funds to Russia and the next sale of export proceeds in an amount set by the presidential decree.
What restrictions apply to exporters
As of February 28 exporters were required to sell 80 percent of their foreign exchange earnings within three business days of receipt under any foreign trade agreement. The measure aimed to support the ruble and shield it from depreciation, a response to Western sanctions and the freezing of Russia reserves abroad.
Relief began in mid April when the Central Bank loosened foreign exchange controls for the non commodity non energy sector and extended the sale period from three days to 60 days due to difficulties in selling dollars and euros. By May the sale period was extended again to 120 days. On May 24 Putin signed a decree reducing the share to 50 percent, with the Ministry of Finance arguing that the move supported ruble exchange rate stability and ensured adequate domestic foreign exchange liquidity.
International transfer limit
To curb the outflow of funds, Russia imposed strict limits on international transfers by citizens and companies. Initially transfers were capped at 5 000 dollars or equivalent per month. With the ruble gaining strength the limit rose to 10 000 dollars for transfers to foreign accounts and 5 000 dollars for transfers made without opening an account. Mid May brought another relief increasing the monthly overseas transfer limit to 50 000 dollars, a measure targeted at Russian residents.
From June 8 the threshold for transfers from non residents rose again to the equivalent of 150 000 dollars immediately. Restrictions remained in force at least until September 30, 2022. A Central Bank official noted that the amount had been tripled, which at times weighed on the ruble against the dollar.
What’s going on with the ruble
The ruble has strengthened since mid March amid Western sanctions and the actions of the Central Bank and the Ministry of Finance. On June 9 trading on the Moscow Exchange showed the dollar at about 57.5 rubles, reflecting a decline in the dollar’s value that day.
During the sanctions era Russia saw a drop in imports and continued strength in exports driven by commodity sales and higher prices. Analysts noted that foreign exchange revenues from exports kept flowing into the country and were converted into rubles. As a result demand for rubles outpaced demand for dollars. Restrictions on foreign ownership of Russian securities and limits on cash withdrawals also contributed to a stronger ruble. Some experts warned that excessive ruble appreciation could reduce tax revenues and complicate social spending. In the 2022 budget the dollar rate was assumed at an average of 72.1 rubles per dollar.
Overall, the evolving policy measures reflected a balancing act between stabilizing the ruble, maintaining liquidity in the domestic market, and preserving the state’s fiscal capacity. The situation remained dynamic as international conditions and domestic policy continued to interact.