Non-residents’ investments in Russian financial market: Bank of Russia’s decisions

Pursuant to the executive order of the Russian President, foreign investors have access to deposits with Russian credit institutions, securities both in on-exchange anonymous trading and as part of IPOs, as well as exchange-traded derivatives. However, to purchase these assets, a foreign investor has to open an In-type account.

The Bank of Russia has established both the mode of operation for these accounts and the terms for their opening with banks and professional market participants. In addition, brokers and asset managers are required to maintain separate records of foreign investors’ assets, while banks and record-keeping institutions must exchange information when processing transactions on In-type accounts.

Furthermore, the Bank of Russia has lifted the restrictions on the purchase of foreign currency in the domestic market for investors from unfriendly countries who will enter the Russian market and invest according to the new rules.

Foreign persons who currently have C-type accounts will also be able to invest via In-type accounts, subject to using new funds for this purpose. However, the regulator will maintain restrictions on assets in C-type accounts, prohibiting foreign investors from using them for investment.