Doing business in Russia: financial aspects

Banking System

The banking sector in Russia is regulated by the Central Bank of the Russian Federation. It licenses and controls banks, issues money, sets the key interest rate and establishes official exchange rates.

Opening a bank account

A company may open one or multiple accounts, including at different banks. Accounts can be in either Russian rubles or other currencies.

To open an account, a document package must be submitted and signed personally by the General Director in the presence of a bank representative. The process takes 1−2 weeks. Legally, any ultimate beneficiary with a share of over 25% must be disclosed. In practice, banks may require disclosing any ultimate beneficiary with a share of over 10%, in which case opening an account may take one month or more.

In connection with the imposition of sanctions and restrictions on international transactions, it is recommended to open accounts in Russian branches of foreign banks, considering the following:

A foreign citizen can also open an account in Russia in any currency. This requires a special application to the bank, a notarized passport copy and the document granting the foreigner the right to stay in Russia.

When opening a bank account outside Russia, Russian tax residents should notify the Russian tax authorities of the account and once a year report about account activity.

Currency Control

Settlements between Russian residents can be made only in Russian rubles. Prices in contracts may be indicated in any currency, but they must be converted into rubles when making payments.

Settlements between residents and non−residents may be made in any currency and are subject to mandatory currency control by the banks (even for settlements in Russian rubles).

For import operations exceeding 3 million rubles and export operations exceeding 10 million rubles (including import/ export of services), the related contract must be registered with the bank under a special procedure.

Failure to comply with currency control requirements may result in significant fines of up to 100% of the transaction amount

Ways of business financing by founders

1. Capital increase (charter or additional)
2. Grant financing
3. Loan

The Russian-Asian Union of Industrialists and Entrepreneurs (RAUIE) has been helping foreign companies to develop business with Russia since 2010. To start cooperation with Russia with the support of the RAUIE you can leave an application via the "ask a question" form on the website, or by email office@raspp.ru.

Our experts will help you develop your business with Russia not only in export but also in import, namely to find a direct manufacturer in Russia and conclude a deal with him on the supply of products to China or start your investment project in Russia for the production of agricultural or food products for export to China, including obtaining government incentives for the investor in Russia.