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

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.