The Ministry of Finance and the Ministry of Economy did not agree on foreign securities on IIS – Kommersant

The Ministry of Finance and the Ministry of Economy have not agreed on a draft government resolution on the categories of securities that cannot be purchased using individual investment accounts (IIA). About it “Interfax” said a source familiar with the discussions.

In November, the Ministry of Finance developed a resolution according to which investors will not be able to purchase securities of foreign issuers on IIS. The new rules were supposed to come into force from the beginning of 2024. The explanatory note to the document stated that in conditions of “unprecedented sanctions pressure” it is inappropriate to encourage Russians to purchase foreign financial instruments.

According to the agency’s source, the Ministry of Economy, at the stage of approving the project, advocated removing securities of issuers from the EAEU countries from the restrictions. The Ministry of Economy justified its position by the fact that Russia must ensure the free movement of services and capital, as well as freedom of trade in services and investment. The Ministry of Finance believes that the purchase of foreign securities does not correspond to the purpose of IIS-3, since they are introduced to attract long-term investments in the Russian economy.

Law IIS-3 came into force on January 1. Such accounts should provide tax preferences in the form of a combination of benefits of accounts such as IIS-1 (return to the account owner 13% of the deposited amount) and IIS-2 (exemption from tax on income from the account). From 2024–2026, the minimum period for maintaining an account to receive benefits will be five years, and then ten years. Agreements can be drawn up in the absence of a valid agreement on IIS-1 and IIS-2.

More details in the material “A third type has been added to accounts”.

Anastasia Larina