Russia Toughens Regulations on Repatriation of Loans to Foreign Residents

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This month, fund repatriation requirements were extended to include cover loans that were issued by Russian residents to non-resident borrowers, thereby reducing the chances for companies to transfer currency abroad through non-repayable loans.

The new obligations and penalties for Russian lenders will make it much more difficult for residents, who must now confirm whether they receive foreign or Russian currency from non-resident borrowers through bank accounts with authorised banks, and prove they are following the terms established for any future loan agreements.