The Bank of Russia has allowed the use of funds from special "C" type accounts in transactions for the exchange of blocked assets with non-residents. The Board of Directors of the Central Bank decided to make changes to the "C" account regime, where from 2022, securities and money of unfriendly non-residents are blocked in response to sanctions. Vedomosti reviewed the document.
Now a foreigner can transfer funds from his bank account "C" to a Russian investor as part of a transaction, as a result of which ownership of securities frozen in Russia will be transferred to a resident, and property blocked abroad to a non–resident. The transfer of ownership of securities to a resident will require the permission of the Board of Directors for monitoring foreign investments, the Central Bank's decision emphasizes.
Also, non-residents can now transfer dividends received to their bank accounts "With" to residents in order to fulfill their obligations to transfer funds, follows from the decision of the board of directors. These transfers will also require permission from the authorities.
The changes made do not create new exchange mechanisms, they allow funds to be debited from accounts "With" "in very special cases" as part of transactions for the exchange of blocked assets, for which permits have been issued by the management board, a representative of the Central Bank told Vedomosti.
The changes came into force on July 31.
