Bank of Russia determines regime of K-type bank accounts to settle up with foreign buyers for natural gas
Pursuant to Clause 10 of Executive Order of the Russian President No. 172, dated 31 March 2022 (hereinafter, the Executive Order), the Board of Directors of the Bank of Russia has established the regime of K-type bank accounts to settle up with foreign buyers for natural gas starting from 1 April 2022.
An authorised credit institution opens K-type bank accounts in Russian rubles and foreign currency for foreign buyers at their request.
Funds in foreign currency under natural gas supply contracts are credited to a K-type account in this currency.
To sell a foreign currency, the funds of a foreign buyer are debited from its K-type account in foreign currency at its instruction and converted into Russian rubles pursuant to the procedure specified in Clause 6 of Executive Order No. 172. After the conversion, the funds in Russian rubles are credited to the K-type bank account in rubles.
Funds in rubles are transferred from the K-type account to the accounts of Russian natural gas suppliers.
Other debits and credits from/to K-type accounts, such as misdirected funds or payments for services of an authorised credit institution, should be carried out pursuant to the standard bank account terms and conditions.