Bank of Russia allows new "unfriendly" investors to buy foreign currency
The Bank of Russia has lifted restrictions on the purchase of foreign currency on the domestic market by foreign investors from "unfriendly" countries who come to the Russian market and invest under the new rules. This was announced by the regulator on 1 August. "Conversion operations on "In" type accounts. . . will be carried out in the domestic foreign exchange market without restrictions," the decision of the Central Bank's Board of Directors reads.
On 1 July, the Russian president signed a decree on guarantees for foreign investors wishing to invest in Russian company shares and bonds, federal loan bonds, and Russian mutual funds. The document allows foreign investors from all countries, including unfriendly ones, to buy and sell Russian securities and to freely repatriate the income earned on such assets. Deposits in Russian banks are also available to foreigners.
The procedure applies to new foreign money entering Russia from abroad starting 1 July 2025. A new type of account has been created for such investments – the "In" type account. Foreign persons who now have "C" type accounts may also invest with "In" accounts using new funds, but assets held in "C" accounts will continue to be treated restrictively – they cannot be used for investments.
On 31 July, the Central Bank's Board of Directors established the operating terms of "In" type accounts, which are subdivided into:
"In" type bank, deposit, brokerage and trust management accounts can be credited with funds for Russian investments received from foreign bank accounts or accounts in other foreign financial market organisations. In addition, the same investor may transfer money between its various "In" type accounts. Russian securities may be credited to an "In" type depo account.