Russia tweaks tax code to make it easier for foreign companies to pay in rubles

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In practice the measure requires foreign gas buyers to open ruble and hard currency accounts at Gazprombank, which will receive their payments in foreign currencies and convert them into rubles

Olga Anufrieva, deputy chair of parliament’s budget committee, said the new amendment “greatly simplifies the registration and opening of an account” with a Russian bank.

Putin has said that the role of national currencies such as the ruble in exporting deals should rise, and Reuters reported on Wednesday that oil giant Rosneft had asked for rubles and full prepayments in tenders for crude. Kremlin spokesperson Dmitry Peskov has said that there is still time for so-called “unfriendly” countries to switch to rubles, as payments for gas delivered since Putin’s decree will fall due in May.

Russia invaded Ukraine on Feb. 24 in what it called a “special operation” to demilitarize and “denazify” its neighbour. Ukraine and Western nations have dismissed this as a baseless pretext for war. Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter.

 

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