Putin canceled the requirement to sell foreign exchange earnings to exporters

President Vladimir Putin has canceled a demand to sell 50 percent of foreign exchange earnings to Russian exporters. The relevant decree of the President was posted on the official Internet portal of legal information.

According to him, the volume of mandatory sales of foreign exchange earnings is now determined by the Government Commission on Foreign Investment, and the timing of the sale is determined by the Board of the Central Bank.

A few days after the start of the "special military operation" in Ukraine, Putin signed a decree committing exporters to sell 80 percent of their foreign exchange earnings within three working days. In April, the Central Bank extended the deadline to 60 days. The government then allowed exporters with import contracts not to sell foreign exchange earnings until September 1.

In late May, the government allowed exporters to sell 50 percent of their foreign exchange earnings instead of 80 percent. The Finance Ministry explained the decision by the stabilization of the ruble exchange rate and the achievement of "a sufficient level of foreign exchange liquidity in the domestic foreign exchange market." Proposals to reduce demand were prepared by the Central Bank and the Ministry of Finance, said a spokesman for the ministry.