Russia Allows Foreign Investors to Swap Frozen Funds for Blocked Russian Assets Abroad; State to Not Facilitate Exchange Process
The exchange process, which aims to unblock approximately $16.3 billion worth of assets frozen amongst 3.5 million Russians, will only be organized by brokers and securities market participants—not the state—and is entirely optional.
- Following sanctions imposed on Russia due to its actions in Ukraine, Russia's state will facilitate the exchange of blocked funds held by foreign investors from 'unfriendly' countries, which are frozen in special 'type-C' accounts in Russia, for abroad-held securities owned by Russians.
- The process, which targets to unblock about $16.3 billion worth of assets owned by over 3.5 million Russians, will be voluntary and managed by brokers and securities market participants, not the Russian state.
- The Russian finance ministry stated that the decree establishes legislative policies for conducting the asset exchange, though the state will not partake in organizing the exchange process.
- Russia's President, Vladimir Putin, signed the decree stating it is a response to measures taken by the United States and others that are considered 'unfriendly and contradictory to international law'.
- The initial phase of this financial mechanism aims to unblock accounts worth approximately 100 billion rubles.
Reuters 
Fox Business 
