Russia has begun preparations to exchange frozen assets with foreigners, - Bloomberg

Russia is preparing the exchange of frozen assets of Russian companies / photo REUTERSRussia has appointed a broker to carry out the exchange of frozen assets between Russian and foreign investors who have come under international sanctions imposed after the invasion of Ukraine, writes Bloomberg.

It is noted that Investment Chamber LLC, a Voronezh broker that is not under sanctions, will collect applications from Russian investors. These are companies that want to exchange shares they own abroad for cash held by non-residents in so-called "C" type accounts in Russia, according to statements from the Ministry of Finance and Companies.

Agreed deals are expected to be concluded by July 29, according to a statement from the Investment Chamber. This only applies to securities registered with the National Settlement Depository of Russia, and the maximum limit for any transaction has been set at 100,000 rubles ($1,100).

According to journalists, Russia blocked the funds of non-residents from countries it considered "unfriendly" in type "C" accounts shortly after the start of the war. As of the beginning of November 2022, there were more than 280 billion rubles in these accounts.

Since then, the central bank has not disclosed the amount of frozen assets, although last June "Interfax" reported that by the end of 2022 it will grow to almost 600 billion rubles, the publication said.

It said the Bank of Russia created a mechanism in December to allow Russian investors to sell frozen foreign securities to non-residents using money from their bank accounts, in accordance with a decree by President Vladimir Putin.

The Russian investment company "Finam" estimates the value of assets that can be exchanged at 80-100 billion rubles, and the number of investors waiting for the opportunity to exchange their blocked assets at tens of thousands. Eurobonds, shares and depositary receipts of Russian companies registered abroad will not be part of the exchange.

The "Investment Chamber" said it will then combine the securities and divide them into lots of similar composition and value, after which it will collect applications from foreign investors to exchange shares for their money stuck in Russia until July 5. The assets that are not sold will be returned to their Russian owners, and the non-residents' unused funds will remain in their "C" accounts in Russia.

Frozen assets of the Russian Federation

Back in August 2023, the Financial Times wrote that Russia offered the West to exchange frozen assets. Moscow plans to provide interested Western investors with the opportunity to buy the assets of Russian companies that were immobilized in Europe, at the expense of their own funds stored in accounts in Russia.

Earlier, UNIAN wrote that EU leaders are afraid of confiscating Russian assets. France and Germany, as well as the European Central Bank, expressed the greatest caution.

• The restoration of Ukraine will cost $1 trillion, there is already an approximate plan, - Bloomberg
• Ukraine is desperately looking for an opportunity to cover the shortfall in US aid, Financial Times
• Bad news for Biden: approval rating not rising despite improving US economy, FT