Putin signed a decree on the exchange of assets of Russians frozen in the West for assets of foreigners in the Russian Federation

A decree was signed by President Putin allowing for the exchange of investor assets up to a value of 100 thousand rubles.

Russians' frozen Western assets will be swapped for the blocked assets of foreign entities in Russia.

On Wednesday evening, Vladimir Putin, the President of Russia, signed a decree concerning extra temporary regulations regarding the trading of foreign securities.

Foreigners who have funds in type C accounts will be able to purchase assets from Russians who have them blocked.

RBC reports that the maximum amount of securities that can be redeemed per person should not exceed 100 thousand rubles, and the need for a legal commission to approve transactions with non-residents is no longer necessary.

Auctions for transactions with foreigners will be conducted according to conditions set by the government commission for monitoring foreign investment in Russia. The Central Bank will be responsible for regulating the exchange mechanism.

Anton Siluanov, the Russian Finance Minister, recently reported that the assets of over 3.5 million Russians, amounting to 1.5 trillion rubles, are currently blocked overseas.

The NSP law office notes that the decree provides for the implementation of a process for trading foreign securities owned by Russian investors that are blocked in foreign depositories.

VEGAS LEX, a law firm, has noted that European regulators have previously been doubtful about the system for exchanging blocked assets in the public domain.

Elvira Nabiullina, the head of the Bank of Russia, has commented for the first time on the US sanctions blocking against the St. Petersburg Exchange. She stated that the potential risks mainly affect qualified investors.

Nabiullina stated at the Finopolis 2023 forum that Russian investors had been able to offload foreign securities worth approximately $4 billion.