CBR sees no willingness from 'unfriendly' counterparties to discuss exchange of blocked assets systematically

ST. PETERSBURG. July 6 (Interfax) - The Central Bank of Russia (CBR) thus far does not see any willingness on the part of counterparties from "unfriendly" jurisdictions, including at the level of regulators, to discuss options systematically for the exchange of mutually frozen assets of investors.

During a conversation with reporters on the sidelines of the Financial Congress of the Bank of Russia, Central Bank First Deputy Governor Vladimir Chistyukhin once again refused to disclose the amount of funds accumulated in special "C" type accounts.

"These are significant amounts, and they continue to grow. This is a significant argument for negotiations. Another matter is that we do not see any willingness thus far from the counterparties of 'unfriendly' countries to negotiate on a systematic basis," Chistyukhin said.

"Foreign regulators, perhaps they [the ministries of finance of Belgium and Luxembourg, where Euroclear and Clearstream are registered, respectively]; perhaps the European Union; perhaps some representatives of the United States, Singapore or other countries, are not ready today to conduct systemic negotiations on blocked assets; both on our blocked assets there, and on their blocked assets here," Chistyukhin said in order to clarify who is meant by "foreign counterparties".

The CBR estimates that the total amount of funds in special "C" type ruble accounts - on which, among other matters, income on securities owned by "unfriendly" non-residents is blocked - exceeded 280 billion rubles as at the beginning of November 2022. This was the only time that the CBR has disclosed the figure, having refrained from comment since then.

According to Interfax sources, funds in the "C" accounts had approached 600 billion rubles at the end of 2022. The CBR recently disclosed an approximate figure in the regulator's analytical review of the banking sector for the first quarter of 2023. According to the review, funds totaling 700 billion rubles, which had accumulated in type "C" accounts, were transferred from the National Settlement Depository (NSD) to the Deposit Insurance Agency (DIA). The CBR's board of directors decided on December 29, 2022, that credit institutions were required to open "C" accounts in the DIA by at least January 20, 2023.