The Ministry of Finance has released a draft law (the “Draft Law on Currency Regulation”) to amend Federal Law No. 173-FZ “On Currency Regulation and Currency Control”, dated 10 December 2003 (the “Law”).

The main goal of the Draft Law on Currency Regulation is to improve currency control procedures in relation to foreign economic activities.

The amendments propose:

  • expanding the list of non-resident persons (this would exclude Russians who permanently reside abroad as well as those with residency permits, employment visas or study visas that are valid for at least one year or the aggregate of such visas with an overall validity of at least one year); and
  • specifying what details must be included in a deal passport (the current Law does not provide such information).

The current Law designates non-resident individuals as Russian citizens who are recognised as residing permanently in a foreign state in accordance with the state’s laws.

The Draft Law on Currency Regulation, if adopted, should clarify the currency control procedures to be followed in foreign currency transactions.

[Federal Draft Law “On Amending the Federal Law ‘On Currency Regulation and Currency Control’ to Define Non-resident Rights in Exchange Transactions and Simplify Currency Control Procedures in Foreign Economic Activities”, dated 18 February 2011]