New, large-scale processes to unfreeze Russian investors' assets not currently under discussion - Nabiullina

YEKATERINBURG. Feb 20 (Interfax) - The Central Bank of Russia is not currently discussing new, large-scale processes to unfreeze the assets of Russian investors blocked abroad, Central Bank Governor Elvira Nabiullina said.

"We are not currently discussing any large processes. However, we are of course trying to support possible mechanisms in order to restore the legal rights of Russian investors," Nabiullina said at a press conference.

"We, together with the government, developed various processes to assist in freeing up the funds following the freezing of Russian investors' funds, and those who were not subject to sanctions, namely, absolutely unfairly. A certain portion of the funds was freed up last year, and, if memory serves me right, this was around 570 billion rubles. The funds frozen in the form of securities, coupon payments were unfrozen. This affected 1.5 million people," Nabiullina said.

The amount cited by Nabiullina includes the results of the exchange of frozen assets, payments on foreign securities, and the replacement of Eurobonds, the Central Bank's press service explained to Interfax.

President Vladimir Putin in November 2023 signed decree No. 844 "On additional temporary measures of an economic nature related to the circulation of foreign securities" that established the conditions for exchanging investors' assets blocked in Russia and abroad. The decree stipulates that non-residents could buy back blocked foreign securities of Russian investors using funds in their type "C" accounts. Residents could present for redemption securities with an overall initial value of no more than 100,000 rubles that were recorded in the accounts of the National Settlement Depository (NSD).

Information of the Investment Chamber, which is the organizer for the exchange of blocked assets, indicates that non-residents bought out the blocked assets of Russian investors for 10.64 billion rubles following two stages of settlements in 2024.

The government also issued presidential decree No. 665 "On the temporary procedure to fulfill government debt obligations of the Russian Federation to residents and foreign creditors, as expressed in government securities, whose nominal value is indicated in foreign currency, and other obligations on foreign securities" in the autumn of 2023, thereby allowing Russian investors to receive dividend and coupon payments on blocked securities.