Russia opens financial market to new investors from "unfriendly countries"

Russian President Vladimir Putin has signed a decree that opens the door to new foreign investment in Russian financial markets despite Western sanctions over the full-scale war in Ukraine. This was reported by Bloomberg.

According to the document, investors, including those from so-called "unfriendly countries," will be allowed to invest in Russian securities without the mandatory use of special blocked type C accounts.

Instead, they will be able to use nominee accounts of a new type IN, which allow them to withdraw capital from Russia.

Thus, the decree makes it clear that the restrictions imposed by Russia after 2022, including the mandatory blocking of foreign money in special accounts, will no longer apply to new investors.

At the same time, this decision does not apply to money that has already been frozen on type C accounts. They remain blocked.

After the outbreak of the war, Russia imposed strict capital controls, in particular on investors from Western countries that it considers "unfriendly." This has led to the freezing of billions of dollars in dividends, coupon payments, and proceeds from asset sales.

Russia's Central Bank Governor Elvira Nabiullina said that Russia needs new investments, and therefore "fresh capital" should not be subject to sanctions.

• In the winter, Russians began calling Western companies with a proposal to return.
• The Russian authorities began developing criteria that would be a condition for foreign businesses to return to the country.
• During the three years of full-scale war, Russia lost almost $300 billion of foreign investment. Foreign direct investment in the country during this period fell by a record 57%.