Russian insurers not paying dividends to be able to write off blocked assets by instalments starting in 2023

MOSCOW. Dec 14 (Interfax) - Russian insurance companies that do not pay dividends (do not distribute profit) will be able to write off the value of blocked assets in instalments starting January 1, 2023, the Central Bank said.

When calculating capital and solvency ratios, the value of completely blocked assets subject to explicit restrictions due to sanctions and for which there is no alternative source of compensation will be determined taking into account deferrals on the write-off of the blocked assets.

The deferral option presumes that the value of such assets for the purposes of calculating capital and solvency ratios will be written off gradually, by at least 10% per year, although insurers will be able to write off these assets at a faster rate. Or their value will be written off through settlements, such as mutual offsets of claims and obligations, where possible, the Central Bank said.