Russia to create investment accounts for frozen assets – Business & Finance

MOSCOW (Reuters) – Russia will change the law to allow private investors to open a second special account where they can keep their shares and financial assets frozen due to sanctions, a senior government official said on Thursday.

Deputy Finance Minister Alexei Moiseev did not specify the reasons for the change – but such a move could free up space in investors’ original accounts for assets not encumbered by Western sanctions imposed because of the conflict in Ukraine.

About 6 trillion rubles ($110 billion) of foreign stocks held by Russians have been frozen as a result of Western sanctions and Russia’s own authorities and platforms restricting trade in foreign assets, the first deputy said. central bank governor Vladimir Chistyukhin.

The Finance Ministry said on Thursday it was working on a system allowing Russian investors to hold two Individual Investment Accounts (IIAs) – a type of brokerage account that offers tax benefits on investments.

This decision would not help to unfreeze the assets. Instead, it could encourage Russian investors to use their first accounts to invest more cash in Russian stocks and funds, ensuring that frozen foreign assets do not use tax-exempt investment allowances. . The new system would require a change in the law because current legislation allows Russians to hold only one IIA, Moiseev said Thursday at an economic conference in the Volga town of Cheboksary, streamed online.