CBR sees option of buying out frozen assets with foreigners' money in C accounts as priority - deputy governor

ST. PETERSBURG. July 7 (Interfax) - The Central Bank of Russia (CBR) is working on a mechanism to buy out the blocked assets of Russian investors with nonresidents' funds held in special C accounts, and retail investors should be prioritized in this process, CBR deputy governor Filipp Gabuniya said.

CBR first deputy governor Vladimir Chistyukhin said in June that the CBR is working out an arrangement to sell the frozen foreign securities of Russian investors to nonresidents at a premium, and it proposes to use funds in C accounts for settlements.

The CBR is "trying to create conditions on which it will be possible" to propose that foreign investors use the assets they have, including rubles in C accounts, to buy some of the blocked assets of Russian investors, foremost retail investors, Gabuniya told reporters on the sidelines of the CBR's Financial Congress.

"In our mechanism we want, foremost, to set it up so that retail [investors] with small accounts have the priority," he said.

Asked if the idea of using funds in C accounts to buy out the blocked assets of Russian investors is now a priority for the CBR, Gabuniya said "yes."