Temporary rules for transactions/operations with shares of a Russian joint-stock company, federal loan bonds (OFZ), bonds of a Russian issuer, the rights to which are centrally recorded by a Russian depository, with shares of a Russian mutual fund, entailing the transfer of rights to such securities, their transfer to a remote control or pledge have been introduced.
The Rules apply when such securities are:
purchased after 1 March 2022 from persons from unfriendly countries;
credited to a depo account (personal account) of the owner opened with a Russian depository or register of securities holders from certain accounts, namely:
from a personal account of a foreign organization opened in the register of holders of the Central Bank, which is a registrar in accordance with its personal law;
from a depo account of a foreign nominal holder opened in a Russian depository or register of holders of the Central Bank;
from a depo account of depository programs opened with a Russian depository;
from a depo account of a foreign authorized holder opened with a Russian depository;
from an open foreign organization in a Russian depository or register of holders of securities of a depo account (personal account) of the owner - in relation to securities, the possession of which or any legal and actual actions with which are carried out by a foreign organization in the interests of another person on the basis of an agreement concluded between them.
These transactions are made on the basis of permissions from the Bank of Russia (if the applicant is a credit institution and a non-credit financial institution) and the Government Commission for Control over Foreign Investments in the Russian Federation (in other cases).
Clause 14 of Decree No. 138 provides that the Government of the Russian Federation must, within 10 days, approve the procedure for issuing permits by the Government Commission for Control over Foreign Investments in the Russian Federation.
For more details: Decree of the President of the Russian Federation of 3 March 2023 No. 138 "On Additional Temporary Economic Measures Related to the Circulation of Securities"
Nadmitov, Ivanov & Partners Law Firm will notify of the publication of this procedure for the purposes of planning the timing of the execution of transactions with securities, the formation of the necessary package of documents.
Tel.: +7 (495) 649-87-12