The exchange of blocked assets will begin in the Russian Federation with retail investors

“Kommersant” became aware of the first details of the government’s plans to exchange assets frozen in accounts in the Russian Federation and abroad. In particular, at the first stage it will be about unblocking small portfolios of citizens from the Russian side – up to 100 thousand rubles. This strategy is aimed at satisfying the interests of retail investors in the first place. Experts note that, despite the relevance of the scheme, it contains a number of risks.

As part of the exchange of assets of Russians blocked abroad for funds from foreign investors in the Russian Federation on type C accounts, at the first stage it is planned to satisfy the interests of medium-sized Russian players with investments of up to 100 thousand rubles, NAUFOR President Alexei Timofeev told Kommersant. By this, according to him, the state will solve the problem for the widest possible range of investors: “I hope that investors with larger portfolios, who own the most blocked securities, will get a similar opportunity.”

On August 22, Finance Minister Anton Siluanov announced the preparation of a presidential decree that would allow the exchange of blocked assets between Russian and foreign investors. At the first stage, it is planned to unblock accounts for 100 billion rubles.

In total, according to the Ministry of Finance, the assets are blocked from 3.5 million Russians for 1.5 trillion rubles.

The Bank of Russia explained to Kommersant that the blocked assets of retail investors are, as a rule, their investments in securities, the bulk of which was frozen in the accounts of Russian infrastructure organizations in foreign institutions. The volume of unlocked assets at the initial stage will be limited, the Central Bank confirmed, first of all, “conditions will be created for retail investors.”

Interested foreign investors will be given the opportunity to purchase from Russian the corresponding “blocked” foreign securities at the expense of funds held on accounts of type “C”, the Bank of Russia specified. The participation of investors (both Russian and foreign) will be voluntary, the Central Bank added.

Mr. Timofeev said that the last time the exchange scenario with the market was discussed at a meeting with Mr. Siluanov at the end of June (see Kommersant on June 21). “There are many Russian investors who would prefer to get rid of blocked securities, on the one hand, and on the other hand, non-residents who intend to get rid of securities blocked in the Russian Federation, in connection with this, an opportunity should be given to pay off accounts “C”, he explained.

The share of investors with portfolios up to 100 thousand rubles. in the total volume of blocked assets does not exceed 15% in monetary terms, but can be up to 40% in terms of number, believes independent financial analyst Andrei Barkhota. However, according to him, the effect of the implementation of the exchange “will be largely localized by their imbalance”: the total amount of funds in type “C” accounts is approximately 20 times less than the blocked funds of Russian companies and citizens.

According to Mr. Barhota, the priority of unblocking small portfolios confirms the “symbolic nature of the new mechanism.”

“The negative effect is leveled for the cohort of investors, which can be described as “people’s”,” the expert emphasizes.

Oleg Chikhladze, director of the brokerage business of BCS World of Investments, considers the issue “timely and important.” Mr. Barhota believes that, if successfully implemented, the initiative can at least partially compensate for the impact of the sanctions on cross-border investments.

It seems realistic to unlock up to 100 billion rubles. funds of Russian investors, which make up a small share of the total amount of blocked resources, “on the horizon of the year,” adds Anna Avakimyan, chief analyst at RegBlock.

However, the upcoming exchange is not without risks, experts say.

The main risk in the scheme will be for foreign investors – although they get a chance to unfreeze assets, in practice the recognition of claims on foreign securities will depend on the position of Euroclear and Clearstream and foreign regulators, Andrey Shpak, partner of Tomashevskaya & Partners, explains.

On the one hand, in any case, the rights were registered with the NSD, which is under sanctions, which can be a formal obstacle, the lawyer notes. But on the other hand, he clarifies, given that there are precedents for recognizing the unblocking of assets under certain conditions, it is impossible to exclude unfreezing for assets purchased in this way by non-residents in the European circuit. According to Mr. Shpak, “the issue will largely lie in the political plane.”

Ksenia Kulikova