Ruble Rises Most in Three Weeks to Dollar as Companies Pay Taxes

The ruble climbed the most in three weeks as Russian companies converted export revenue into local currency to pay taxes.

The Russian currency strengthened 0.6 percent against the dollar to 31.2410, the largest increase on a closing basis since April 29. The ruble climbed 0.4 percent against Bank Rossii’s basket of dollars and euros to 35.2810. The yield on benchmark OFZ bonds due February 2027 was unchanged at 6.94 percent by 1 p.m. in Moscow.

Russian companies will probably pay about 200 billion rubles ($6.4 billion) of taxes today, according to Dmitry Polevoy, chief economist at ING Groep NV in Moscow. A further 100 billion rubles are due May 27 with 200 billion rubles of corporate income tax to be paid on May 28, OAO Rosbank (ROSB) analyst Vladimir Kolychev said by e-mail.

“The market remains sensitive to export flows,” Kolychev said.

Brent oil declined 0.3 percent to $104.31 per barrel in London, snapping three days of gains. Oil and natural gas contribute about half of Russia’s budget revenue.

To contact the reporter on this story: Vladimir Kuznetsov in Moscow at

To contact the editor responsible for this story: Wojciech Moskwa at

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