Determined conditions for the exchange of blocked assets in accordance with Decree of the President of the Russian Federation No. 844

The Government Commission of the Russian Federation on Foreign Investment Control introduces methods for calculating the overall initial value of alienated foreign securities that are tied to a single resident.

All trades and transactions under these conditions must be completed by September 1, 2024. The President recently signed an executive order focused on easing the conditions for dealing in foreign securities. The purpose of this decree is to enable the exchange of frozen assets of Russian citizens.

According to the decree, the total value of securities of foreign organizations held by one resident must not exceed 100,000 rubles. Transactions under the decree will be conducted in the form of trades. 

Acceptance of bids begins March 25 at 10:00 and continues until May 8 at 19:00. The period for submission of applications from foreign investors (non-residents) is from 10:00 on June 3 to 19:00 on July 5. The whole procedure is planned to be completed by September 1.

The process consists of four stages:

1. Acceptance by the organizer of offers for sale of blocked corporate assets from Russian citizens through their brokers – will last until May 8, bids for sale of assets sent to the organizer should not exceed the amount of 100,000 rubles;
2. Formation of lots by the organizer – will last until May 31. A single pool of assets is created, which is divided into parts, and a starting bid is set for them;
3. The organizer collects bids for the purchase of formed lots from foreign sellers – until July 5, the price of bids must not exceed the starting rate;
4. After selection of bids from foreign companies, the organizer determines a single final sale price for the entire pool, which will not be lower than the starting rate. Settlements on the results of the buyout will be completed by July 29.

With the advent of a new procedure for the exchange of frozen assets, foreigners will have the privilege of acquiring frozen foreign assets from Russian private investors at the expense of funds in “C” type accounts. The Ministry of Finance expects that by virtue of this mechanism three million Russians will be able to recover their investments limited to 100 thousand rubles.

The auction organizer will publish all necessary information about the redemption process and transactions.