Putin allowed payments to residents from type “C” accounts – Kommersant

President Vladimir Putin signed decree, allowing payments from type “C” accounts to residents and companies controlled by them. We are talking about funds received into accounts before March 19. Transfers of securities can be received by account holders upon application submitted to the Russian depository.

According to the decree, Russian residents and foreign companies under their control will be able to receive payments from type “C” accounts. In addition, payments will be received by the companies listed in the previously published decree, namely the International Investment Bank, the New Development Bank and the Russian-Kyrgyz Development Fund.

The decree notes that only those payments that relate to Russian companies can be received from type “C” accounts. In particular, we are talking about payments on shares of companies, OFZs and bonds of Russian issuers, depositary receipts, as well as on Eurobonds associated with the obligations of a Russian legal entity.

The decree also establishes restrictions on the timing of the acquisition of securities. If the securities were acquired after March 1, 2022, then among their owners there should not be persons from unfriendly states. For securities purchased before March 1, 2022, the decree does not specify separate requirements.

Type “C” accounts were introduced in 2022 in order to prevent the withdrawal of funds and assets from Russia by residents from unfriendly countries. Accounts are used to transfer payments on securities of Russian issuers owned by foreign citizens and companies. You can withdraw money from accounts only with permission from a government commission. Funds withdrawn from them can be used for mandatory payments, including account fees, taxes and fines. According to data at the end of March 2023, a total of about 500 billion rubles could be held in type “C” accounts.