Russia has approved the rules and conditions for the conduct of auctions for the purchase by non-residents of foreign securities held by residents, including using funds on C-type bank accounts

15 March 2024
Law Messenger
On 11 March 2024, the Ministry of Finance of Russia announced that the Government Commission for the Monitoring of Foreign Investments in the Russian Federation had approved the procedure and conditions for the conduct of auctions and the conclusion of transactions (operations) involving foreign securities (“the Conditions”) by way of the exchange of frozen assets between Russian and foreign investors as provided for in Decree No. 844 of the President of Russia “On Additional Temporary Economic Measures Connected with the Circulation of Foreign Securities” (“Decree No. 844”).

The Conditions are set out in an appendix to the minutes of a subcommittee meeting of the Government Commission for the Monitoring of Foreign Investments in the Russian Federation (No. 225/2 of 2 February 2024) and have been published on the website: https://vykupicb.investpalata.ru/.

The holding of auctions and conclusion of transactions in accordance with the approved Conditions:

  • on the one hand, will enable Russian resident private investors to withdraw from investments in foreign securities which are subject to restrictions on disposal owing to restrictive measures introduced by unfriendly countries in relation to the Russian securities market (the aggregate initial value of foreign securities belonging to one resident may not exceed 100,000 roubles);
  • on the other hand, will enable non-residents to purchase those securities for roubles, including using funds held on special C-type  bank accounts. Moreover, the securities will be credited to special transit custody accounts of non-residents which allow them to be transferred from the Russian depositary infrastructure to a foreign infrastructure without additional authorisations from Russia.

Authors:
  • Natalia Aristova
    Partner
    B1 Legal
  • Marina Komochkina
    Senior Manager
    B1 Legal
  • Stanislava Iakovleva
    Senior Consultant
    B1 Legal
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