Nearly a third of Russian companies’ earnings stuck abroad due to US sanctions
Pravda Ukraine
Russian exporters may be forced to leave up to 30% of their foreign currency earnings abroad due to the tightening of US sanctions on Russia’s banking sector.
Source: RBC (Russian Business Consulting), a Russian news outlet, citing MoneyRoo
Details: Entrepreneurs note that this significantly complicates the financial situation of companies, limiting their ability to conduct further operations, including import purchases.
These challenges are especially severe for companies involved in raw material exports and the supply of high-tech equipment.
The main problems arise during transactions with partners in countries where the US dollar is widely used, or through banks closely connected to American financial institutions.
If a Russian bank is sanctioned by the US (included on the sanctions list), businesses must switch to other banks that are not currently subject to restrictions. However, even then, foreign banks often block payments due to concerns about sectoral sanctions.
Delays in the return of foreign currency earnings are limiting imports into Russia, requiring exporters to limit settlements with counterparties. In response, demand for payment agents is increasing by 10-20%.
The research also states that transaction costs have risen dramatically, reaching 5-20% due to fees, currency risks, and other additional expenses.
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