According to the estimates of the Bank of Russia, 80% of the foreign exchange earnings of exporters is about $470-480 billion a year. The decision will be made on February 28 and will come into force on the same day.
Photo: Konstantin Kokoshkin / Global Look Press
The Ministry of Finance of Russia announced a decision on the mandatory sale of foreign exchange earnings by exporters.
“Today, a decision will be made to introduce, from February 28, 2022, for residents who are participants in foreign economic activity, the mandatory sale of foreign currency in the amount of 80% of the revenue due to residents under all foreign trade agreements,” — says in a post on the ministry’s website.
RBC turned to exporters for comments. A spokesman for Severstal declined to comment. RBC sent inquiries to NLMK, MMK, Gazprom, Gazprom Neft, LUKOIL, SIBUR, Surgutneftegaz, Rosneft, NOVATEK, PhosAgro, UC Rusai, Norilsk Nickel, Uralkali and Polyus.
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In February, before the active phase of the military conflict in Ukraine, the Bank of Russia predicted that the export of goods and services from the country in 2022 would amount to $595 billion. Based on this, 80% of exporters’ foreign exchange earnings will correspond to about $470–480 billion per year. According to VTB Capital, the export of goods and services in 2022 will be about $650 billion, based on current prices. However, real exports may be lower as many importers in foreign countries have now suspended or reduced purchases of raw materials in Russia due to sanctions (for example, difficulties with bank financing of commodity trade have been reported). In March 2020, when Russian exports began to shrink amid the pandemic and falling oil prices, the supply of goods abroad brought about $30 billion to Russian companies, according to the FCS data.