Russia Eurocurrency Deposits
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 | Sobinbank A 100% subsidiary Gazprom - USD 9.0%, EUR 7.5% |
Procedure to open bank account in Russia
Russian law mandates the physical presence of the client or their authorized representative. The following documents must be provided for non-resident accounts:
For client:
- passport
- translation of passport, certified and apostille de la hague
- proof of residence:
- non-residents of Russia have to be registered at the place of temporary residence for a period their stay in Russia.
For representative:
- copy of client's passport (certified and apostilled translation)
- representative's passport
- translation of passport (if representative is not resident of Russia)
- power of attorney (certified and apostilled translation)
- proof of residence:
- If representative is a non-resident of Russia he has to provide proof of temporary residence.
- Non-residents of Russia have to be registered at the place of temporary residence for a period their stay in Russia.
Withholding Tax on Bank Deposit Interest
Interest on bank deposits is exempt provided it does not exceed the refinancing rate of the Central Bank of Russia for Ruble deposits or 9% for foreign-currency deposits. The excess is subject to tax at 35%.
So for example a USD deposit paying 11% p.a. will be subject to a withholding tax of (35% of 2%) i.e. 0.7%, resulting in a net interest of 10.3% p.a.
Deposit Insurance
The Russian State provides the a deposit guarantee per account to a maximum sum insured of 700,000 Rubles (approx US$28,000).
Sovereign Credit Rating
As at September 2009, the S&P credit rating for Russia is "BBB" with outlook negative. This is investment grade.
