Individuals and legal entities from the European Union are prohibited from exchanging assets with Russians, according to the European Union’s Directorate-General for Financial Stability.
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The European Commission has announced a ban on participating in asset swaps with Russians.
Previously, the Bank of Russia developed a scheme to exchange assets blocked in the accounts of the sanctioned NDR and European depositories Euroclear and Clearstream. Under the proposed mechanism, non-residents can use funds from “C” type accounts to purchase outstanding securities.
As explained in the European Directorate’s statement, EU legal entities and individuals are prohibited from participating in this plan. The reason is that the NDR, which is under European sanctions, must participate in the procedure.
“No funds or financial resources may be provided to NSD, either directly or indirectly,” the management said in its response to a question about participation in the scheme.
It is also noted that participation in such a transaction would be a direct violation of sanctions.
Vladimir Putin signed a decree on the mutual exchange of blocked assets. The Investment Chamber accepted applications from Russian investors wishing to participate in the transaction until May 8.
Applications from non-residents are accepted until August 2. According to the Ministry of Finance, the transactions will be completed on September 1. Until June, Russian investors offered more than 35 billion rubles for the exchange of securities.
The Russian People’s Democratic Republic has been under European sanctions since 2022.
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.
