Beginning in mid-October, a new requirement will affect a segment of Russian exporters. They will need to place the majority of their foreign exchange earnings into accounts domiciled in the Russian Federation. The measure is tied to a presidential decree within the government framework, signaling a significant shift in how foreign currency proceeds are managed domestically.
According to the official release, individual exporters must deposit at least 80 percent of all foreign currency received into Russian bank accounts within 60 days after funds are received, in alignment with the terms outlined in their export contracts. This stipulation creates a clear timetable for liquidity management and helps bring foreign earnings under domestic control within a defined window.
In addition, the decree requires exporters to convert at least 90 percent of the foreign exchange deposited in Russian accounts into rubles for domestic use. This conversion must occur within two weeks of the deposit, ensuring a rapid introduction of foreign funds into the local market.
The government office emphasized another obligation: exporters must sell no less than 50 percent of the funds they receive under each contract within 30 days of receipt. This condition further anchors foreign currency transactions in the domestic market and supports the anticipated stabilization of the ruble by increasing the supply of rubles in circulation.
On October 11, President Vladimir Putin signed a decree authorizing the return of compulsory sale of foreign currency earnings by Russian exporters for a period of six months. The list of affected entities will be determined by government authorities and will include 43 companies. Individual firms will also be required to submit detailed plans and programs for buying and selling foreign currency on the domestic market to the Central Bank and to Rosfinmonitoring.
Putin has indicated that these measures are expected to exert a positive influence on the ruble’s floating exchange rate, contributing to greater stability in the currency’s performance amid ongoing market dynamics.
The Bank of Russia’s press service stated that reinstating the compulsory sale of foreign currency proceeds is aimed at improving liquidity within the market. Central Bank Governor Elvira Nabiullina noted that the restriction is temporary and targeted, designed to address short-term liquidity concerns without broadening into a lasting policy change.
Dmitry Babin, a former financial professional, commented that Putin’s decision has supportive implications for the ruble’s exchange rate. The assessment reflects a view that the policy shift could bolster investor confidence and contribute to more predictable currency movements during the transition period.