The Ministry of Finance of Russia and the Investment Chamber reported the approximate parameters and terms of the transaction for the purchase of securities by non-residents from resident individuals. Applications for the sale of frozen assets will be accepted from March 25 to May 8.
Join
The organizer of the auction will be the Investment Chamber and the procedures are expected to conclude on September 1 of this year. The collection of applications will be carried out through the mediation of trust management companies, mutual investment fund management companies and mediators. 3.5 thousand exchange instruments are subject to exchange.
How will the exchange be carried out?
- In the period until May 8, a collection of rescue requests from resident individuals will be carried out;
- then, until May 31, lots will be formed for non-resident purchases;
- It is planned to collect applications from non-resident sellers before July 5;
- Calculations based on the results of the exchange will be made by July 29.
An exception will be the securities of the St. Petersburg Stock Exchange, which were blocked after the site was included in the sanctions lists, according to the Central Bank.
The Bank of Russia approved on December 8, 2023 the procedure for interaction between market participants in the exchange of frozen assets. The Board of Directors of the Central Bank decided that investors from the Russian Federation will be able to sell blocked foreign securities to non-residents in exchange for funds held in type “C” accounts.
Only securities booked by the National Settlement Depository (NSD) can be sold. Russian investors will be able to submit applications for a total amount not exceeding 100 thousand rubles.
Non-residents will also be able to sell their securities. However, the assets will be credited to special transit accounts for securities accounting.
NDR accounts were blocked by European depositaries Clearstream and Euroclear due to the armed conflict in Ukraine.
Author:
Natalia Gormaleva
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
