Central Bank of Russia allows unfriendly countries' investors to purchase foreign currency for new investments from I accounts

MOSCOW. Aug 1 (Interfax) - The Central Bank of Russia has defined the rules for servicing foreign investors who, under a presidential decree, have been granted the right to invest in the Russian financial market using new funds.

According to the presidential decree no. 436 on additional guarantees of the rights of foreign investors issued by President Vladimir Putin in July, non-residents are allowed to make deposits in Russian credit institutions, purchase securities both on organized markets in a non-addressed mode and during initial placements, as well as use derivatives instruments. To make new investments, they must open a new type of account - an I account.

The CBR has established the framework for such accounts and the conditions for opening them in banks and with professional market participants. The regulator mandated that brokers and asset managers must maintain separate accounting of foreign investors' assets, while banks and settlement institutions must exchange information when conducting operations on I accounts.

The CBR also lifted restrictions on the purchase of foreign currency on the domestic market for foreign investors from unfriendly countries who invest under the new rules.

Foreign entities that currently have C accounts may also invest using I accounts with new funds. However, assets recorded on C accounts will remain subject to restrictions and may not be used for investments.