Putin signs decree guaranteeing new non-resident investments in Russia via "In" accounts
MOSCOW. July 1 (Interfax) - President Vladimir Putin has signed a decree providing guarantees for new investments by non-residents in the Russian securities market.
Decree no. 436, on additional guarantees of the rights of foreign investors, is dated July 1 and has been published on the official legal information portal.
To enable non-residents to make new investments, a new type of account - "In" accounts - will be opened. These accounts will hold funds in both rubles and foreign currency, as well as stocks, bonds (including federal loan bonds or OFZ) and investment fund units. The regime introduced by the decree applies only to investments made via "In" accounts.
It emerged in December 2024 that the Finance Ministry and the Central Bank of Russia had prepared a presidential decree guaranteeing new foreign investors the ability to withdraw their investments. "We believe it's not unrealistic that foreign investors could come to the Russian market. Those of us who have worked in financial markets for a long time know that, despite everything, greed trumps all. And the high level of returns that can be achieved here will inevitably attract investors - provided the regulatory environment assures them that they can safely withdraw their money whenever they want. I'm confident this will lead to a flow of foreign investments," Deputy Finance Minister Alexei Moiseyev said at the time.
The decree "concerns portfolio investors, primarily who invest in the Russian securities market. They will be guaranteed the ability to withdraw their funds without any 'C' accounts [which hold the frozen pre-sanctions assets of residents from unfriendly jurisdictions], without restrictions, regardless of the investor's country of origin," Deputy Finance Minister Ivan Chebeskov said.
The decree applies to foreign investors from both friendly and unfriendly countries (these include persons associated with unfriendly countries controlled by such persons), including those making investments with the involvement of professional participants from countries that are not unfriendly.
Foreign investors acting in accordance with the decree may make investments in Russian territory without taking provisions of a number of presidential decrees adopted after February 2022 into consideration.
They may transfer, including outside Russia, funds credited to "In" accounts in rubles and foreign currency intended for investments in Russian territory or received from such investments.
The "In" accounts will be opened by banks and non-bank financial institutions to account for cash, as well as shares in Russian joint stock companies, federal loan bonds, bonds of a Russian issuer, the centralized accounting of rights to which is carried out by a Russian depository, and investment units of a Russian mutual investment fund. The Central Bank of Russia's board of directors will determine the "In" account regime.
Foreign investments can only be made from "In" accounts using cash credited from accounts with foreign banks and other financial market organizations located outside Russia, as well as with proceeds from such investments. Cash cannot be withdrawn from these accounts.
Conversion transactions can be carried out with "In" accounts, and funds and Russian securities can be transferred between them.
All obligations under transactions governed by the decree are fulfilled only using "In" accounts.
The guarantees envisaged by the decree apply to the purchase and sale of securities through a broker both during an IPO and on the stock exchange, the payment of interest on them, the placement of deposits in Russian banks and their return, the purchase of derivative financial instruments on the stock exchange and the fulfillment of obligations on them.
Registrars and depositories will not need to keep separate accounting of Russian securities in such cases. Banks and non-credit financial institutions will have to ensure separate accounting of the property, claims and obligations of a foreign investor acquired as a result of investments on Russian territory.
The decree goes into effect on the date of publication.
