Currency control requirements relaxed in Russia

MOSCOW, February 28 – RIA Novosti. Currency control requirements for Russian exporters will be eased from February 28, which will reduce the administrative burden on companies and increase their access to export insurance products.

Thus, the receipt of insurance payments in foreign currency or the currency of the Russian Federation from resident insurers will be considered the fulfillment by exporters of the obligation to repatriate foreign currency earnings. The obligation to repatriate will also be deemed fulfilled if the authorized Russian bank pays the exporter funds within the framework of a guarantee for a foreign trade transaction.

In addition, the list of permitted foreign exchange transactions between residents includes the payment of insurance premiums and the payment of insurance claims. And the list of documents that can be submitted by Russian exporters to substantiate the shortfall in foreign exchange earnings includes documents relating to fixing the fact of damage to goods and regulating their payment.

These innovations will provide exporters with an effective instrument for hedging the risks of non-fulfillment of a foreign trade agreement, which will reduce tension in the field of currency control and revive turnover, Ekaterina Portman, Director of Deloitte Legal, commented to RIA Novosti.

In addition, now not only the Russian Agency for Insurance of Export Credit and Investments (EXIAR) will be able to insure the risks of default on obligations under foreign trade contracts, but any Russian insurer. An exception will be those organizations that will be included in the special list of the Bank of Russia. The grounds for this will be, inter alia, the work of the company with a license to carry out voluntary property insurance for less than a year, as well as the presence of two or more violations during the year, for which the insurer was subject to liability measures.

“This is a very positive innovation, which, according to the authors of the amendments, should increase the number of insurance companies that can deal with such risks, and, consequently, lead to increased competition between them and better conditions for insurance contracts for their clients,” the chairman of the board told the agency Association of Professional Insurance Brokers (APSB) Katerina Yakunina.

However, while the law remains a “half measure” – appropriate amendments are needed to the Civil Code so that insurers do not face problems in courts, the expert added. “Credit insurance is classified as insurance of business risks. And according to article 933 of the Civil Code of the Russian Federation, business risk can be insured” only for the insured himself and only in his favor. “Thus, it will not be possible to appoint, for example, a bank as a beneficiary under the policy, which contradicts the prevailing the practice of insurance of export credits and receivables, “Yakunina explained.

Author: wedocount

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