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Showing posts with the label Type-'In' account

Discounts applied upon liquidation of shares (underlying ADRs)

After the liquidation of the Sberbank shares underlying the ADR-program, various investors seem to wonder what the background is of this discount. Decree No. 81 of the President of the Russian Federation dated March 1, 2022, "On Additional Temporary Economic Measures to Ensure the Financial Stability of the Russian Federation" (Decree No. 81; https://www.consultant.ru/document/cons_doc_LAW_410578/ ) established a special procedure for the execution of transactions involving securities between residents of the Russian Federation and "persons of foreign states committing unfriendly acts". According to the general rule stipulated by Decree No. 81, transactions involving securities between residents of the Russian Federation and "unfriendly persons" are only possible with the permission of the Government Commission for the Control of Foreign Investment in the Russian Federation (the Government Commission). The minutes of the Government Commission meeting of th...
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New investments in Russia may soon be possible via type 'In'-accounts

On July 1, 2025, Decree 436 of the President of the Russian Federation was published (http://actual.pravo.gov.ru/content/content.html#pnum=0001202507010017), which establishes guarantees for new investments by foreign residents in the Russian Federation. The Decree provides for the possibility of foreign investors, including unfriendly investors, to acquire the following securities during the initial placement, as well as on the stock exchange (based on non-addressed applications [not over-the-counter]): - Shares of Russian legal entities - OFZ - Bonds of Russian issuers - Investment units of Russian mutual investment funds The provisions of the Decree also establish the possibility for foreign investors to receive income on such securities (and subsequently withdraw them outside the Russian Federation in foreign currency), as well as to conclude agreements that are derivative financial instruments and place deposits in Russian credit institutions. The specified operations with funds ...
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