A resident of Yekaterinburg was heavily fined for purchasing a car from a foreigner for 6.5 million rubles and paying in cash. According to the press service of the Sverdlovsk Region courts, the buyer is a Russian currency resident, while the seller is a foreign citizen without resident status. Under Russian law, such a transaction between a resident and a non-resident is considered a currency operation and must be conducted exclusively through bank accounts.
During a customs inspection, it was discovered that the payment was made in cash. As a result, a report was filed against the buyer under Part 1 of Article 15.25 of the Code of Administrative Offenses of the Russian Federation. The customs authority imposed a fine of 20 percent of the illegal transaction amount, totaling 1.3 million rubles. The Leninsky District Court of Yekaterinburg and the Sverdlovsk Regional Court upheld this decision.
Lawyer Evgeniya Sabitova explains that any foreign citizen without a permanent residence permit (VNZH) in Russia is considered a non-resident under currency legislation. If the seller does not have a VNZH, it is prohibited to conduct a car purchase transaction with them using cash. In such cases, payment must be made only by transfer to the seller's bank account in Russia, or through letters of credit or escrow accounts.
Experts recommend checking the seller's documents, specifically their passport and VNZH status, before finalizing a deal. If payment is made in cash, the fine can range from 20 to 40 percent of the illegal transaction amount. It should be kept in mind that even after the fine is paid, the obligation to pay for the car is not canceled.
