Nearly one-third of Russian companies’ foreign exchange earnings have been stuck abroad after American sanctions tightened.
Russian exporters may not return up to 30% of foreign exchange earnings to the country after US sanctions against Russia’s banking sector were tightened. The Moscow Times writes about it on Monday, January 20.
“This is a large amount that negatively affects the financial condition of companies and their ability to carry out additional activities, including import purchases,” said Andrey Gusev, managing partner of the Nordic Star law office.
According to him, problems with payments have a particularly negative impact on companies operating in the field of exporting raw materials and high-tech equipment.
The most pressing issue is in negotiations with countries where the US dollar is traditionally strong, or where local banks work closely with American financial institutions. Foreign banks may refuse to make payments to the accounts of even unsanctioned credit institutions, seeing the risks of sectoral sanctions.
Delays in the return of foreign currency earnings will lead to a slowdown in the flow of imports to Russia. Behind these problems, many exporters are forced to limit payments to their counterparts, and, therefore, contractors cannot start new import supplies.
We remind you that on January 15, the United States introduced new sanctions against Russia. The sanctions package includes metallurgical plants, defense industry enterprises, banks and institutions that cooperated with Moscow.
Russian oil is stuck at sea. Strong US sanctions
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.