Investors will be able to sell blocked assets to non-residents

Dec, 27 2023

The Bank of Russia has approved new rules for the sale of foreign securities by Russian investors in order to facilitate the process of exchanging blocked assets for Russian money. These rules apply to securities deposited in the National Settlement Depository. Bidding will begin after approval by the Government Commission, and participation in them is voluntary. At the same time, brokers and managers are obliged to inform their clients about the start of trading.

Investors can apply for the sale of securities for a total amount of up to 100 thousand rubles, taking into account the calculation rules and restrictions on trading established by the Government Commission. The sold securities will be temporarily stored in accounts in depositories until the end of trading. At the end of trading, the funds received from the sale of securities will be credited to the accounts of Russian investors without any restrictions on use.

For non-residents wishing to participate in the auction, it is required to submit an application for the purchase of blocked securities. The acquired assets will be credited to special transit accounts. Foreign investors can use funds from type “C” accounts to pay for assets, in accordance with the regime established by the decision of the Board of Directors of the Bank of Russia.

Earlier, a decree was issued on the exchange of blocked assets between Russian and foreign investors. Russian retail investors will be able to sell their blocked foreign assets. However, at the first stage, they have a limited amount available for redemption, not exceeding 100 thousand rubles. If an investor has securities in the amount of 200 thousand rubles blocked in his portfolio, then using the new mechanism he will be able to realize only half of this amount. To apply for asset unblocking, investors need to contact their broker.

Giving investors the opportunity to release blocked assets can help increase liquidity in the market and strengthen financial stability. However, the final economic results will depend on the reaction of investors and their decisions regarding the use of the released funds.

Author of the article
Investors will be able to sell blocked assets to non-residents
Valentina Khlavich
Managing Partner
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