Restrictions eased on contributions to foreign charter capital

The Russian Central Bank has allowed payments for shares in, and contributions to, the property of non-residents without a special permit, if the relevant funds are deposited in rubles or in the currency of a friendly state.

In addition, the Russian Central Bank allowed payments in the currency of a non-friendly state, provided the amount of such a transaction does not exceed the equivalent of RUB 15 million. A larger amount still requires a special permit from the Russian Central Bank.

As a reminder, previously without a special permit from the Russian Central Bank residents could make contributions only to the capital of residents of "friendly states" in rubles or, accordingly, in the currency of a "friendly state,” provided the amount of such contributions does not exceed RUB 10 million (or foreign currency equivalent).

Taking into account the relaxed policy, the possibility of contributing to a foreign company now depends solely on the currency of payment, rather than on the status of residency of the foreign entity, which demonstrates a trend toward easing foreign currency restrictions introduced earlier and significantly expands the opportunities for investing in foreign entities.

We will continue to monitor the developments and keep you updated.