Foreign currency acquisition limitations have been abolished by the Central Bank
The Central Bank of Russia has introduced new regulations on July 31, 2022, that allow foreign investors from unfriendly countries to purchase foreign currency on the domestic market, provided they invest using new funds through specific account types known as "In-type accounts."
These new regulations are in line with a presidential decree signed by Vladimir Putin on July 1, which also permits conversion operations, transfers between "In-type" accounts, and the crediting and debiting of Russian securities. However, it is important to note that the decree does not change the permissibility of these operations on "In-type" accounts or alter the prohibition of withdrawing cash from these accounts.
Foreign investors are required to open these "In-type" accounts to acquire assets, and brokers, managers, and banks are obligated to maintain separate records and share information regarding these accounts. This regulatory change aims to facilitate investment while maintaining some controls over existing blocked assets.
Existing assets in previously established C-type accounts remain under restriction and cannot be used for investment purposes. The Bank of Russia continues to maintain a limited regime for assets accounted for on "S-type" accounts, meaning they cannot be used for investments. It is also prohibited to make investments using funds credited to non-"In" bank accounts.
Investors opening an "In-type" account for investments will not be required to open existing special "S-type" accounts. The new rules also align with the July 2025 presidential decree that designates special conditions for foreign investments made after July 1, 2025. This allows foreign investors, including those from unfriendly countries, to make investments without the previously enacted counter-sanction restrictions, as long as they comply with the new regime.
Notably, dividends from Russian companies to non-residents from unfriendly countries continue to face restrictions. Dividends must be paid into C-type accounts, from which funds are limited to specific uses such as tax payments or purchasing Russian government bonds (OFZs). Withdrawal permissions for dividends require approval from the Central Bank or Ministry of Finance depending on the payer.
In summary, since July 31, 2022, the Central Bank of Russia has removed previous currency purchase barriers for foreign investors from unfriendly countries investing new funds under regulated account types, while retaining restrictions on assets and dividend flows linked to earlier account structures.
[1] Central Bank of Russia. (2022, July 31). New regulations for foreign investors from unfriendly countries investing in Russia. Retrieved from Central Bank of Russia website
[2] The Kremlin. (2021, July 1). Presidential decree on special conditions for foreign investments made after July 1, 2025. Retrieved from The Kremlin website
[3] Central Bank of Russia. (2022, July 1). Prohibition of withdrawing cash from type "In" accounts. Retrieved from Central Bank of Russia website
- The new regulations by the Central Bank of Russia allow foreign investors from unfriendly countries to invest in the domestic market by opening specific account types known as "In-type accounts" and using new funds for finance and business purposes.
- Despite the new regulations, dividends from Russian companies to non-residents from unfriendly countries continue to face restrictions, with dividends paid into C-type accounts and only allowed for specific uses such as tax payments or purchasing Russian government bonds (OFZs).
