Central Bank limits international advanced payments from Russia

Central Bank Russia

As of March 27, the Central Bank of Russia limits advance payments between residents (Russian companies) and non-residents (international entities) to 30% of the total amount. This resulted in contract terminations by international carriers who refuse to deal with Russian exporters and importers unless 100% advanced payment is made as the risks are high.

Experts believe that the Central Bank’s decision to limit the advance payment aims to avoid schemes on the currency withdrawal to abroad, when a company transfers a 100% prepayment, but no services are provided or they are overestimated. The prepayment limit rule does not apply to contracts between individuals.

The measure has hindered already complicated cross-border logistics in Russia.

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