The President of the Russian Federation signed a Decree that establishes a temporary procedure for the fulfillment of obligations to pay the profits of limited liability companies, economic partnerships, production cooperatives that are residents, to participants in such legal entities that are foreign persons associated with foreign states, which commit in relation to the Russian Federation, Russian legal and individuals unfriendly actions.
If a decision is made to distribute the profits of residents, their payment to foreign creditors is carried out in rubles in accordance with paragraphs 2-9 of the Decree of March 5, 2022.
The Central Bank of the Russian Federation and the Ministry of Finance of the Russian Federation are given the authority to determine a different procedure for fulfilling obligations to pay residents' profits to foreign creditors.
The Decree also authorizes the Central Bank of the Russian Federation and the Ministry of Finance of the Russian Federation to issue permits to fulfill obligations to pay residents' profits to foreign creditors without complying with the procedure established by this Decree.
Nadmitov, Ivanov and Partners Law Firm advises on the signing of a decree on the procedure for fulfilling obligations to foreign creditors.