FAS proposed a complete ban on foreign exchange contracts within Russia

The Federal Antimonopoly Service proposed to completely ban inside RUSSIA contracts linked to foreign currency or world commodity indices.This may lead to the need for full prepayment of goods and the rejection of long-term contracts.

The bill on the prohibition of setting the contract price in terms of foreign currency has been submitted for consideration by the presidential council for codification and improvement of civil legislation, follows from the agenda of the meeting of the council scheduled for March 31.

The government press service forwarded questions to the Federal Antimonopoly Service (FAS), which developed this document. They noted that they continue to work on the bill. At the same time, the Ministry of Finance has already agreed it, RBC was told in the press service of the ministry.

In an explanatory note to the document (RBC read the text of the bill), the FAS states that it was developed in accordance with the plan of priority actions to ensure the development of the Russian economy in the face of external sanctions pressure, which was approved by a government commission in mid-March.

Why did the authorities decide to ban pegging to the currency

Pegging to a foreign currency or exchange indicators is widely used in contracts to hedge against the weakening of the ruble. Such conditions in contracts are often used by foreign property owners to calculate rents, and metallurgists have traditionally tied metal prices to indices on the London Metal Exchange (LME). Such binding is also common in the field of bank loans, mergers and acquisitions, the sale of petroleum products and art objects, says Stanislav Klimov, a lawyer at Asterisk law firm.