Russia extends mandatory forex revenue sale requirement until end of April 2025

Russia will extend capital controls that help prop up the rouble for one year until April 30, 2025, the government said on Saturday.

The period to return forex revenue has been extended to 120 days from 90 days from the date of delivery of goods to the buyer.

The controls, first introduced by presidential decree in October 2023, require dozens of undisclosed exporting firms to deposit no less than 80% of foreign currency earnings with Russian banks, and then sell at least 90% of those proceeds on the domestic market within two weeks.

The central bank has long voiced doubts over the controls' efficacy, disagreeing publicly with the government over the issue.

The controls were introduced as the rouble tumbled past the 100 mark against the dollar and authorities sought to wrest back control of the foreign exchange market. The rouble now trades near to 92 to the dollar.

The government has argued that the controls reduce rouble depreciation risk. The central bank believes that high interest rates, held at 16% on Friday, and strong export revenues in summer 2023 were more impactful in supporting the rouble.