The Bank of Russia has set new regulations for foreign investors who wish to invest in the Russian financial market using new funds. According to a recent decision, these investors can access deposits with Russian credit institutions, participate in on-exchange anonymous trading and IPOs, and trade exchange-traded derivatives. However, they are required to open an In-type account to purchase these assets.
The central bank has also defined how these accounts will operate and outlined the terms for opening them with banks and professional market participants. Brokers and asset managers must keep separate records of foreign investors’ assets, while banks and record-keeping institutions are expected to share information when processing transactions involving In-type accounts.
Additionally, the Bank of Russia has removed restrictions on purchasing foreign currency in the domestic market for investors from countries classified as unfriendly, provided they invest under the new rules.
Foreign individuals who currently hold C-type accounts may also use In-type accounts for investment if they use new funds. Restrictions remain on assets held in C-type accounts; foreign investors cannot use those funds for investment purposes.
"The Bank of Russia has established the rules for servicing foreign investors who have obtained the right to invest in the Russian financial market using new funds."
"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."