In accordance with the new regulation, dividends from Russia to European, US and some other countries shall be paid in rubles.
Dividends shall be credited to a special bank account (so called “type C account”). The money from the C-account can be used for special purposes only (payment of taxes, purchase of Russian state securities, etc.) Debiting of money from the C-account for other purposes (including transfer of money to the main account of the mother company) is subject to approval of the Central Bank or the Ministry of Finance.
The new regulation applies to dividends exceeding 10 million rubles a month.
The regulation however eases some other restrictions for foreign entities (loans, purchase of shares and real estate).
Please contact mlegal to define if and how your Russian subsidiary may pay out dividends.