A special procedure for the fulfillment of obligations to non-residents was introduced by Decree No. 95. According to this Decree, all payments, including payments on loans and borrowings, as well as on securities, are made in rubles to special type “C” accounts. It is possible to withdraw money from these accounts only after obtaining permission from the Government Commission or in certain cases (for mandatory payments, purchase of obligations at primary auctions, transfer to other C-type accounts).
The Bank of Russia adopted clarifications on July 21 on the procedure for applying Decree No. 95 in relation to foreign citizens with a residence permit in Russia. As the Bank explains, payments on securities to foreign citizens with a residence permit in Russia can be made without using type “C”. However, if a foreigner assigned his claims to a resident or non-resident after 1 March 2022, "C" accounts must be used.
Also, the Central Bank explained that in relation to foreigners with a residence permit, there is no prescription that prohibits brokers from the Russian Federation from selling securities on behalf of foreign clients.
The removal of these restrictions means that a foreign citizen with a residence permit can now freely dispose of the money received from Russian issuers. However, currency restrictions remain on money transfers abroad - no more than $1 million per month.
See: Letter from the Bank of Russia on the procedure for applying the requirements of Decree No. 95 in relation to foreign citizens with a residence permit https://naufor.ru/tree.asp?n=26366
Nadmitov, Ivanov & Partners Law Firm advises clients on obtaining a residence permit in the Russian Federation, obtaining permission from the Government Commission to make transactions with non-residents, conducting transactions/operations with securities, real estate with foreign elements, as well as on sanctions legislation.
Tel.: +7 (495) 649-87-12