Exporters: Putin: No more obligation to exchange foreign exchange earnings


    After the ruble’s initial sharp devaluation, the Kremlin took sharp countermeasures. Now the ruble is to be weakened again in order to stimulate the economy.

    In view of the sharp rise in the value of the rouble, Russian President Vladimir Putin has released exporters from the general obligation to convert 50 percent of their foreign exchange earnings into the local currency.

    In the future, a government commission will determine how much of the income they have to pay for exchange, according to the presidential decree.

    Rubles weaken to strengthen economy

    After Western sanctions on Russia’s war of aggression against Ukraine initially led to a sharp devaluation of the ruble, the Kremlin, the government and the central bank reacted with harsh countermeasures to stabilize their own currency. Among other things, Russians were temporarily no longer allowed to transfer money abroad, banks were no longer able to pay out foreign currency to citizens, and companies that received foreign currency earnings from exports had to exchange them.

    Since imports – and thus demand for dollars and euros – collapsed as a result of the sanctions, the ruble rose significantly as a result. On Thursday, the euro cost a little more than 62 rubles. The last time the ruble was this strong before the war was in 2015. The relief that has now been decided is intended to weaken the ruble again somewhat in order to make the Russian economy more competitive.