The Central Bank will restart the creation of closed mutual funds with frozen assets – Kommersant

The Board of Directors of the Central Bank decided that management companies, until June 16, 2024, can separate assets blocked on the St. Petersburg Exchange from mutual funds into separate closed mutual funds. The decision was made in connection with the introduction of sanctions against the St. Petersburg Exchange.

“After October 15, 2023, due to unfriendly actions on the part of foreign states and organizations in relation to the St. Petersburg Exchange, new blocking of assets included in mutual funds occurred. In total, this affected 28 mutual funds for unqualified investors,” they reported. “Interfax” in the press service of the Central Bank.

In February 2023, the Central Bank approved rules according to which management companies were required to allocate blocked foreign securities from mutual funds to a closed mutual fund if their share exceeds 10%. The management companies had until October 15, 2023 to make a decision. The mechanism was launched in connection with sanctions against the National Settlement Depository.

SPB Exchange hit under US sanctions on November 2, 2023. At the same time, the US Office of Foreign Assets Control issued a license to curtail operations with the trading platform until January 31, 2024. As a result turned out to be $3 billion of Russian investments in foreign securities have been frozen. The St. Petersburg Exchange has suspended trading in foreign securities.

Read more about the situation in the Kommersant article. “Bankruptcy was traded on the St. Petersburg Exchange”.

Lusine Balasyan