How to return blocked assets: Instructions of the Cabinet of Ministers on exchange and time frames

A governmental commission has established conditions for the exchange of blocked assets between russian and foreign investors. The brokerage company “Investment Chamber” has been appointed as the organizer of the exchange; it will ensure the process, determine the parameters and timing of the transaction. The company also established conditions for non-residents to buy foreign securities from residents for rubles, including money from type “C” accounts.

Russian citizens (residents) will be able to sell more than 3,500 exchange-traded instruments. A complete list of tools is published on the company’s website. An application for the redemption of investment securities must be submitted through a broker or management company. Acceptance of applications begins on March 25 at 10:00 and continues until May 8 at 19:00.

The deadline for submitting applications from foreign investors (non-residents) is from 10:00 on June 3 to 19:00 on July 5. The entire procedure is planned to be completed by September 1, 2024.

The process consists of four stages:

• Acceptance of applications for redemption from Russian citizens will last until May 8; applications for the sale of assets sent to the organizer should not exceed the amount of 100,000 rubles
• Formation of lots – will last until May 31. A single set of assets is created, which is divided into parts, and then a starting rate is set for them.
• Applications from foreign sellers are accepted until July 5, and the price must not be lower than the starting bid.
• Payments based on the results of the redemption will be completed by July 29.

The list of investment tools that can be presented for redemption has been approved by the Government Commission. This refers to foreign assets recorded in National Settlement Depository accounts opened with foreign organizations.

The exchange will be carried out in accordance with the Decree signed by the President of the Russian Federation on November 8, 2023. The mechanism allows you to exchange blocked foreign assets for assets of russian citizens frozen abroad, provided that the value of the assets does not exceed 100,000 rubles. Russian owners of foreign assets are exempt from paying for transactions, but foreign owners of russian assets are not exempt from this obligation.