MOSCOW, March 19 Russian President Vladimir Putin signed a decree allowing residents of the Russian Federation, foreign persons under their control, as well as development institutions: the Asian Infrastructure Bank investments, the International Bank for Economic Cooperation, the International Investment Bank, the New Development Bank and the Russian-Kyrgyz Development Fund, receive payments on securities accumulated on type C accounts.
According to the decree posted on the portal for the official publication of legal acts, we are talking about payments on shares of Russian companies, bonds and Eurobonds of Russian issuers, the rights of which are recorded by foreign depositories.
The owner of the securities, according to the document, has the right to send to the Russian depository or the Eurobond debtor an application for the transfer of funds to his ruble account in a Russian bank. The list of supporting documents that must be attached to the application must be approved by the Central Bank.
The Russian depositary makes a decision on payment and within two working days notifies the foreign nominee holder or paying agent about the settlement with the owner of the securities, and then waits for a reasoned objection within 10 days. If this is not received, then, according to the decree, the depository sends a payment order to the bank to transfer funds to the owner from the type C account.
Payments will be made in rubles in an amount equivalent to the value of obligations in foreign currency, calculated at the official exchange rate of the Central Bank for day of the corresponding payment.
The Decree comes into force on the date of official publication.