News

Dividends accrued for payment by Russian subsidiaries of foreign companies but effectively blocked for distribution may be included in a new asset swap scheme currently under discussion among Russian brokerages and asset management firms, RBC Investments reports.

Several brokerages including BKS, Investment Chamber, KIT Finance, T-Investments, and Finam have been working on the initiative since late last year. The plan would see market participants pool clients’ securities that are blocked abroad, identify a Western counterparty, and seek to exchange them for assets frozen in Russia.

One option under consideration involves Russian subsidiaries of foreign companies and the dividends they are unable to remit to their parent companies due to Moscow’s counter-sanctions, RBC Investments said.

Subsidiaries of companies from countries designated as “unfriendly” cannot freely repatriate dividends without approval from a government subcommittee. Russian regulators have also sharply reduced such approvals since early 2026, according to earlier reports.

Under the proposed mechanism, a Russian brokerage would transfer foreign securities blocked in Euroclear to a counterparty in exchange for cash — specifically, profits accumulated by foreign-owned subsidiaries and effectively trapped within Russia’s financial system. Elena Ryazanova, deputy head of legal at Sinara Investment Bank, confirmed to RBC Investments that market participants were discussing schemes involving such subsidiaries.

The transactions would face regulatory hurdles, requiring approvals from both Russian and foreign regulators. Dividends from Western companies are typically held in so-called Type-C accounts in Russia and can be accessed only with permission from the government commission supervising foreign investment