In accordance with a decree issued by the President of Russia, exporters are required to convert a portion of their foreign exchange earnings into rubles and place these funds in domestically governed bank accounts. They must also ensure that their subsidiaries consistently implement mechanisms that enforce this mandatory sale of foreign currency on the Russian market. The official decision outlining these measures has been published on the government portal that reports legal information related to such regulations.
The scope of this requirement extends beyond purely Russian entities. It applies to subsidiaries and firms conducting business overseas, including those established under the laws of other nations. In practical terms, any company export operations linked to Russia should establish internal controls that verify foreign currency proceeds are sold within the domestic market as mandated.
According to the decree, exporters must oversee their subsidiaries to guarantee the application of currency sale obligations. This places a duty on corporate groups to embed the rule into operating procedures across all units, including international affiliates that are part of the same corporate family.
On October 11, the Kremlin’s press secretary, Dmitry Peskov, announced that Vladimir Putin signed a decree concerning foreign exchange earnings. The President instructed a number of Russian exporters to deposit foreign currency earned from trade into their bank accounts and to convert a portion of those funds on the domestic market. This step is framed as a measure intended to bolster the ruble and support domestic financial stability.
During subsequent remarks, the President clarified that the decision was taken to stabilize the ruble exchange rate and to support the state budget, which, in his view, benefits from a slightly lower official exchange rate compared with the current level of the US dollar. These comments reflect the government’s objective of aligning foreign exchange activities with broader macroeconomic stabilization goals.
Earlier statements from Kremlin officials also indicated a preference for keeping the decree confidential, with no intention to publish the terms of the foreign exchange earnings policy in open sources. This approach underscores the government’s emphasis on controlled, policy-directed actions rather than full public disclosure of all operational details. The net effect is a reinforced framework where exporters and their international subsidiaries align their currency operations with Russia’s domestic economic objectives, stretching the impact across related markets and financial institutions. [Source: Kremlin communications and official government postings, attribution included for policy context]