Russia tweaks tax code to make it easier for foreign firms to pay in roubles

(Reuters) – Russian lawmakers on Wednesday handed an modification to the tax code that they mentioned would make it simpler for overseas corporations to open accounts with Russian banks and pay for Russian gasoline and different items in roubles.

Russian President Vladimir Putin final month signed a decree demanding overseas patrons pay for gasoline in roubles or else have their provides minimize. He mentioned this was wanted as a result of in the event that they paid in arduous foreign money, Western sanctions over Ukraine would forestall Moscow from accessing the cash.

In observe the measure requires overseas gasoline patrons to open rouble and arduous foreign money accounts at Gazprombank, which can obtain their funds in foreign currency and convert them into roubles through auctions on a Moscow trade.

Olga Anufrieva, deputy chair of parliament’s funds committee, mentioned the brand new modification “significantly simplifies the registration and opening of an account” with a Russian financial institution.

Putin has mentioned that the position of nationwide currencies such because the rouble in exporting offers ought to rise, and Reuters reported on Wednesday that oil large Rosneft had requested for roubles and full prepayments in tenders for crude.

Kremlin spokesperson Dmitry Peskov has mentioned that there’s nonetheless time for so-called “unfriendly” international locations to change to roubles, as funds for gasoline delivered since Putin’s decree will fall due in Could.

Russia invaded Ukraine on Feb. 24 in what it referred to as a “particular operation” to demilitarise and “denazify” its neighbour. Ukraine and Western nations have dismissed this as a baseless pretext for warfare.

(Reporting by Reuters; Modifying by Nick Macfie)