Dentons

International Top 30 position: 4

Employee protection against currency risks?

By Anna Berlina 

‘Keep your income and expenses in the same currency’ — everyone knows this golden rule, even if they are not always able to stick to it. Foreign citizens working in Russia may receive their salary in rubles, but have expenses in their home country (such as mortgage payments) in a different currency, the euro for example. They may often pay their Moscow landlord in euros or dollars, as it is common in Moscow for rents to be set in foreign currency. Russian citizens often take out loans as the ruble equivalent of a foreign currency, as they believe such loans may be advantageous under certain circumstances. The fall in the ruble since the beginning of this year has hit all those whose foreign currency expenses when calculated in rubles have risen fast, while their ruble income has remained the same. As a result, working in Russia has become less attractive for many foreigners and led some to wonder whether there is a solution to the ruble salary issue and, if not, whether they should leave Russia and look for work in a country with more attractive pay conditions…

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