Ask HN: How do I pay our Russian devs?

#1

Post by quack01 » Fri, Feb 25, 2022, 1:41 PM UTC

Operating a company with a decent amount of remote contractors in Russia. We are worried about being able to pay them. What are the best options? We are currently thinking about having them open foreign bank accounts if they don't have one already.

Where's the best place for them to get a foreign bank account?

What's the best method for them getting the money back into Russia so they can use it?

Re: Ask HN: How do I pay our Russian devs?

#2

Post by rvz » Fri, Feb 25, 2022, 1:52 PM UTC

> What's the best method for them getting the money back into Russia so they can use it?

Cryptocurrencies (not Bitcoin) are your only option.

Re: Ask HN: How do I pay our Russian devs?

#3

Post by duxup » Fri, Feb 25, 2022, 1:55 PM UTC

This is something you really want to ask a lawyer who knows your details.

You don’t want to get this one wrong. Consequences in your country (and for your business in other countries) could be severe.

Re: Ask HN: How do I pay our Russian devs?

#4

Post by Flankk » Fri, Feb 25, 2022, 2:00 PM UTC

Criminal penalties for violating sanctions range up to 10 years in prison, $1 million in corporate fines, and $250,000 in individual fines. Any other questions?

Re: Ask HN: How do I pay our Russian devs?

#5

Post by axiosgunnar » Fri, Feb 25, 2022, 2:16 PM UTC

You don't.

Re: Ask HN: How do I pay our Russian devs?

#6

Post by throwaway290 » Fri, Feb 25, 2022, 2:19 PM UTC

As of now, it appears to be illegal for US businesses to transact with any resident (does not matter if they are peaceful or pro-Ukraine) of any of the annexed or separatist-claimed territories in Ukraine, so you might want to check that ASAP.

If Russia is disconnected from Swift but is still legal to do business with, you could find a way that does not involve Swift. If Russia as a whole falls under the same restriction (consider the implications), then paying your devs will become illegal and any advice on that would be advice on how to violate the law. Consult lawyer.

Re: Ask HN: How do I pay our Russian devs?

#7

Post by MrDisposable » Fri, Feb 25, 2022, 2:23 PM UTC

rvz wrote: post #2

> What's the best method for them getting the money back into Russia so they can use it? Cryptocurrencies (not Bitcoin) are your only option.

Can a US company legally buy and transfer crypto?

Re: Ask HN: How do I pay our Russian devs?

#8

Post by MrDisposable » Fri, Feb 25, 2022, 2:26 PM UTC

Flankk wrote: post #4

Criminal penalties for violating sanctions range up to 10 years in prison, $1 million in corporate fines, and $250,000 in individual fines. Any other questions?

Payments to Russian entities and persons that aren't explicitly sanctioned are still legal. Banks may decide to decline transfers though, or simply terminate accounts that do such transfers on their own discretion – even if they don't have a legal reason to do that.

Re: Ask HN: How do I pay our Russian devs?

#9

Post by trillic » Fri, Feb 25, 2022, 2:33 PM UTC

MrDisposable wrote: post #7

rvz wrote: post #2

> What's the best method for them getting the money back into Russia so they can use it? Cryptocurrencies (not Bitcoin) are your only option.

Can a US company legally buy and transfer crypto?

Yes, but KYC, which is this case likely makes the transfer illegal.

Re: Ask HN: How do I pay our Russian devs?

#10

Post by pier25 » Fri, Feb 25, 2022, 2:42 PM UTC

If they can open a Payoneer account this will give them a US and EU account. Not sure how they will get the money to Russia though.