RBC learned about the proposal of the Ministry of Finance to reduce fines for companies for non-return of export earnings and illegal foreign exchange transactions – Rosbalt

The Ministry of Finance of the Russian Federation submitted a draft law to the government, significantly mitigating administrative responsibility for violations of currency legislation. This is reported by RBC with reference to the materials to the documents, the content of which was confirmed by a source familiar with the initiative.

Amendments to Art. 15.25 of the Code of Administrative Offenses (CAO) provide for a reduction in fines: for illegal currency transactions up to 20–40% compared to the current fines of 75–100% of the amount of an illegal currency transaction; for non-repatriation of export earnings under ruble and foreign currency foreign trade agreements up to 3–5% (compared to the current fines of 3–10% for ruble agreements and 5–30% for foreign exchange agreements); for improper performance or termination of obligations under a foreign trade agreement up to 3-5% of the amount of funds due from a non-resident to a resident, compared with the current 5-30%.

The Ministry of Finance proposed that fines for all exporters for non-return of foreign exchange or ruble earnings amounted to 3-5%. However, selected participants in foreign trade will lose the opportunity to claim similar reduced penalties for non-return of advances on imports in rubles or foreign currency. Penalties for such an offense for residents will remain at the level of 3–10% in the case of ruble contracts and 5–30% in the case of foreign currency contracts. Similarly, the Ministry of Finance proposed to keep the penalties for non-repayment of funds under a loan agreement, where a Russian resident lends funds in any currency to a non-resident, unchanged at the level of 5-30%.

Earlier, Russian President Vladimir Putin signed a decree “On additional temporary measures of an economic nature to ensure the financial stability of the Russian Federation”, according to which, from March 2, the export of foreign currency worth more than $10,000 from Russia is prohibited. According to this document, it will no longer be possible to export foreign cash from Russia currency and (or) monetary instruments in foreign currency “in an amount exceeding the equivalent of 10 thousand US dollars”, calculated at the official exchange rate of the Central Bank on the date of export. Prior to this, Putin signed a decree “On the application of special economic measures in connection with the unfriendly actions of the United States and countries that joined them.” According to this document, exporters are required to sell 80% of the foreign exchange earnings credited to their accounts from January 1, 2022.