LET’S SAY NO TO THE EXCHANGE RATE “SEESAW”

It is sometimes embarrassing and annoying to incur losses because of fluctuating exchange rate of Russian ruble in respect to US dollar!

As soon as in 2014 Central Bank decided not to maintain the fixed fluctuation band of the Russian ruble exchange rate (1 US dollar = 30-40 Russian rubles) at the end of 2014 we saw the exchange rate 1 US dollar = 56.25 Russian rubles (on 31.12.2014) and its maximum uprise was 80 Russian rubles!

In 2014 many logistic companies incurred losses at the time when they should have gained profits. Established margin is often absorbed by exchange rate fluctuations and “currency wars”. We are glad that the State Duma became concerned with this problem and Presto! – upon reading for the third time it adopted the law-in-draft providing that prices and tariffs for the services at the sea ports of the RF should be established in Russian rubles. This law-in-draft, first of all, is aimed at protection of Russian legal entities from unwanted growth of expenses caused by the currency exchange rates fluctuations.

The law was adopted on 26.07.2018 and comes into force in 10 days upon its publication. According to the explanatory note to the law a transition period shall be provided for the companies which have liabilities in foreign currency as on January 1, 2018. The law will come into force on January 1, 2025 for such companies.
Mr. Anatoly Dobrovolskiy