On December 27, 2022, the rules for cash settlements between residents and non-residents (the "Rules") came into force1.
The Rules were adopted in compliance with the special regime established by the Decree No 529 of August 08, 2022 (the “Decree”), regarding the conduct of foreign exchange transactions. The Rules determine the procedure for settlements between non-residents and residents (legal entities, individual entrepreneurs) when carrying out foreign trade activities and/or when granting and returning loans2. In particular, the Decree cancelled the requirements on the mandatory form of settlements3 in the implementation of foreign economic activity and/or in the provision and repayment of loans by Russian legal entities and sole proprietors.
The Rules allow residents to receive cash (in RUB and/or foreign currency) from non-residents in the following circumstances:
- under the terms of foreign trade contracts concluded by residents and non-residents – for goods, works, services, information and results of intellectual activity (including exclusive rights to them) transferred to non-residents
- as a refund of an advance payment under an unexecuted foreign trade contract – for goods, works, services, information, and results of intellectual activity (including exclusive rights to them) not received in the Russian Federation
- under the terms of loan agreements – in case of loans provided by residents to non-residents
Further, no later than the 45th business day after cash settlement with non-resident, resident shall notify the authorized bank and provide with the necessary supporting documents.
Resident has the right to dispose of the cash received in accordance with the Rules in any of the following ways:
- without crediting to accounts, use it for settlements with non-residents under foreign trade import contracts
- credit to accounts in foreign banks
- import to the territory of the Russian Federation in compliance with the requirements of the EAEU law and Russian customs regulations and no later than 30th business day from the date of their import into the territory of the Russian Federation, or no later than the 30th business day from the date of their receipt from a non-resident in the territory of the Russian Federation:
- sell foreign currency to an authorized bank (at the exchange rate of the Russian Central Bank on the day of sale), followed by crediting the received RUB currency to its account in an authorized bank
- credit to its account in the appropriate currency at an authorized bank
- deposit to its cash register
1 The Rules are approved by the Decree of the Russian Government No. 2433 dated December 26, 2022
2 That is, in the cases provided for by subparagraph "b" of paragraph 4 of the Decree of the Russian President No 529 dated August 08, 2022
3 Clause 2 of Article 14 of Federal Law No. 173-FZ dated December 10, 2003 "On Currency Regulation and Currency Control" establishes a general rule that settlements during currency transactions are made by resident legal entities through bank accounts in authorized banks and by electronic money transfers