The scheme, introduced last year, allows companies to issue ruble-denominated “replacement” local bonds to replace Eurobonds.
According to an estimate published by the Bank of Russia on Tuesday, about 81 billion dollars of funds belonging to Russian investors have been blocked by Western financial institutions.
As of November 30, the amount of banned assets in Western financial institutions amounted to 5.7 trillion rubles ($80.8 billion). More than 20% of these funds belong to retail investors, the regulator noted.
Last year, in an effort to reduce risk and protect investors, Russia’s central bank banned brokers from trading for unqualified investors to buy securities from so-called “friendly” countries. The regulator also imposed restrictions in response on assets held by non-residents in Russian jurisdictions.
Speaking at a conference on global challenges facing Russia’s financial market, the head of the Central Bank’s investment department, Olga Shishlyannikova, said that, in her opinion, it is a forbidden asset. “tell” is “very complicated” and said that it will have a negative impact on investors.
However, some decisions have been implemented, he said. For example, Russian investors were allowed to pay directly the proceeds of Russian securities traded in the foreign market.
In addition, under a scheme introduced last year, Russian companies can issue ruble-denominated “replacement” local bonds, a type of bond denominated in a foreign currency, to replace outstanding Eurobonds. . Russian issuers have had great difficulty servicing these bonds due to Western sanctions.
“If all Russian Eurobonds are replaced, retail investors will take more than 50 percent of their assets and start using these funds,” he said. Shishliannikova explained.
The remaining assets are foreign securities of foreign issuers that are not directly related to the Russian economy, he added.
Last September, Russia’s National Settlement Depository requested a general license from the finance ministries of Belgium and Luxembourg to release frozen assets. In December, a general license was issued to release certain frozen funds and economic resources belonging to unsanctioned Russian investors. However, the Bank of Russia does not allow Western countries to return Russian assets.very low” despite not being legally confiscated.
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