The Government Commission determined the terms of exchange of blocked assets

Earlier, Presidential Decree No. 844 of November 8, 2023 “On Additional Temporary Measures of Economic Nature Related to the Circulation of Foreign Securities” (hereinafter - the “decree”) defined the conditions for the exchange of blocked assets, established the procedure for calculating the aggregate initial value of alienated foreign securities owned by one resident, and approved the terms of trading and transactions (operations) with foreign securities.

On March 11, 2024 the Ministry of Finance announced the appointment of the broker OOO Investment Chamber as the organizer of trades between Russian investors and foreigners. The exchange of blocked assets will take place within the framework of this decree, according to which foreign investors with money from accounts type "C" will be able to purchase foreign securities of Russians, which were blocked due to sanctions against the National Settlement Depository (NSD). Only foreign securities held on NSD's accounts with foreign organizations can be tendered for redemption.

The aggregate value of the alienated foreign securities owned by one resident must not exceed RUB 100,000. The initial value of the assets will be determined as of March 22, 2024, based on the closing price of foreign securities on the foreign market. The actual sale value of assets may be higher than the initial value, as it will be formed after the receipt of bids from non-residents and will depend on the actual demand and market conditions.

The procedure for collecting applications from residents will be held until May 8, 2024. An application for sale of blocked foreign securities can be submitted only through a broker, management company or a manager of a unit investment trust. Applications sent directly to the organizer of trades will not be accepted. Until May 31, 2024, all bids will be allocated to lots for redemption by non-residents. They must be identical in terms of the composition of securities and aggregate value. In this case, the organizer of the auction will determine the maximum price, which will allow to sell all lots.

Applications from potential non-residential buyers will be accepted until July 5, 2024, and until July 29, 2024, based on the results of the auction settlements between foreign and Russian investors will be made. If foreign investors do not buy out all lots, the remaining securities will be returned to Russian investors.

The transactions are planned to be completed by September 1, 2024. Participation in the exchange of blocked assets is voluntary, but it will be impossible to withdraw the application. The procedure is free of charge. Assets bought by non-residents will be credited to special transit depo accounts to be opened at the end of the trades; the money that Russian investor receive from the sale will be transferred to accounts specified by them.