MOSCOW, March 30. /TASS/. The Russian Union of Grain Exporters has asked the Bank of Russia to investigate the possibility of enabling foreign purchasers of Russian grain to make payments on export contracts in rubles, according to a letter written by the Union (its copy has been obtained by TASS).

"We are asking to find the possibility of ensuring liquidity in rubles for foreign banks serving purchasers of grain. Among the largest purchasers are Turkey, Egypt, Iran, Saudi Arabi, other African and Middle Eastern countries, as well as a number of Asian countries - Vietnam, Pakistan, Bangladesh," the document said.

According to the letter, grain export contracts are made 1-2 months prior to the date of actual delivery, with purchase and consolidation of grain on the domestic market performed closer to the date of actual delivery. In this respect expenditures on grain purchase in rubles have soared, same as expenditures on the duty (calculated in foreign currency). That said, there is a technical temporary lag between the dates of shipment and deposit of the duty amount, which leads to situations when the funds that have been transferred, are insufficient for payment of the duty in full at the moment funds are credited to the customs’ account.

"We are asking to explore the possibility of fixing the exchange rate of the US dollar for payment of the grain export duty on the day of writing off of amounts from the exporter’s account," the authors of the letter said.

Moreover, they are asking to allow paying back foreign currency loans from the exporter’s currency earnings before the obligatory sale of foreign currency or consider the possibility for foreign currency loans taken before February 24, 2022, to close transactions on purchase of foreign currency at the price of obligatory sale for the purpose of repaying loans, even if the sale was performed in one bank and the purchase for repayment in another, or provide exporters with the right to repay loans in foreign currency in rubles.

"We are asking to consider the possibility of using by exporters the exchange rates of foreign currencies as of February 24, 2022 for closing forward foreign currency transactions closed before February 24, 2022," the letter said.

Among other proposals representatives of the Union of Grain Exporters are asking to explore the possibility of increasing the term of sale of foreign currency earnings from the current three days or limit the spread between the rate on the exchange or the exchange rate of the Central Bank of Russia and the conversion exchange rate.

The letter also contains the Union’s proposals to develop with commercial banks the issue of resuming negotiable lending in rubles within the earlier set limits, to limit the rate on negotiable lending and extension of repayment holidays to exporters that are not regarded as small and medium-sized business. The Union’s representatives note the necessity of limiting tariffs, commissions and currency differences for commercial banks on foreign currency and conversion transactions.