MOSCOW (Reuters) – The Russian government has relaxed requirements for compulsory sales of foreign currency for exporters if more than half the value of contracts is paid in rubles, according to changes to a decree.

In October, President Vladimir Putin signed a decree ordering the restoration of capital controls, affecting dozens of companies in the fuel, energy, metals, chemicals, wood and grain industries in order to support the ruble.

The Russian currency came under pressure from capital outflow and restricted supply of foreign currencies. In April, capital control measures were extended for a year.

Some Russian exporters were required to deposit not less than 80% of their foreign currency earnings in Russian banks and then sell at least 90% of these proceeds on the domestic market within two weeks.

According to changes in the government regulation signed on May 30, the government commission for foreign investments may waive the requirements for the sale of foreign currencies for companies if more than half of the value of their foreign contracts will be settled in rubles.

The central bank has long expressed doubts about the effectiveness of controls, publicly disagreeing with the government on the issue.

The controls were introduced when the ruble fell above 100 points against the dollar and authorities tried to regain control of the currency market. Currently, the ruble costs close to 90 per dollar.

The government argued that the controls reduce the risk of ruble depreciation. The central bank believes that higher interest rates of 16% and high export earnings have had a greater impact on supporting the ruble.