Corporate currency transactions

Currency transaction: a concept from Federal Law No. 173-FZ. For a company, it primarily means:

• buying and selling foreign currency;
• settlements with non-residents in foreign currency and in roubles: paying for imports, receiving proceeds, loans, services;
• transferring money from an account in Russia to its own account abroad and back;
• bringing foreign currency and securities into and out of the country.

Main rules

Between a resident and a non-resident, currency transactions are allowed, but currency control applies to them. The bank requests the contract and documents, and large contracts require registration with the bank. Each transaction is assigned a currency transaction code.

Between residents, currency transactions are prohibited as a general rule. The exceptions are listed in the law. Two Russian companies cannot simply settle with each other in dollars or yuan.

Settlements in roubles with a non-resident also count as a currency transaction, even though no foreign currency is involved.

Where it comes up in a payment through an agent

The ban on foreign currency between residents has a practical consequence. When a Russian company pays a supplier through an intermediary, it usually pays in roubles, and the agent sends the foreign currency to the supplier. In this setup, conversion does not happen in your account. So it matters at what rate the roubles are converted into foreign currency and where that rate is written down.

What to watch for

• The payment purpose must match the contract and the type of transaction.
• The deadlines for submitting documents to the bank are set by Bank of Russia Instruction No. 181-I. Missing them leads to fines under the Code of Administrative Offenses.

When VEDmost arranges the payment, the rate and the fee are fixed in the payment order for each payment before the roubles are debited. More on the Foreign currency contract payments page.

This is a general overview. We decide on your deal after reviewing the documents.