Loan Repatriation – Key Points

New amendments¹ to Russian currency controls entered into force on 14 April 2018 (the Law), extending currency repatriation requirements to loans issued by residents to foreign borrowers. The changes are meant to reduce the opportunities for Russian businesses to shift funds abroad. The Law will make life much harder for residents by establishing new obligations in the administration of loans.

The Law's adoption was not entirely unexpected, given that the bill was proposed in autumn 2015. To a certain degree, the Law continues recent trends in enforcement. Russian currency control authorities are more frequently attempting to impose administrative penalties on Russian lenders where loans are not repaid by non-resident borrowers. The Law's adoption makes the risk of violation of currency law by a resident in this respect more real.