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MOSCOW, July 30The State Duma has adopted in the second reading a bill allowing foreign banks to open branches in Russia from September 1, 2024, but no more than one. The third reading is scheduled for July 31.
This will help create conditions for the development of the international settlement system, and will also help attract foreign investment to the Russian economy, the explanatory note says. 
Lawmakers are counting primarily on the arrival of banks from friendly countries, although restrictions for unfriendly countries are not spelled out, explained last week the head of the State Duma Committee on Financial Markets Anatoly Aksakov.
ONE BANK – ONE BRANCH
The bill allows a foreign bank to open one branch in the territory of the Russian Federation. Moreover, such a branch is prohibited from opening internal structural divisions and engaging bank payment agents.
A foreign bank will be able to carry out professional activities in the securities market through a branch in the Russian Federation, with the exception of trust management. When carrying out banking operations and transactions through a branch, the rights and obligations arise directly for the bank that opened it.
To open a branch, a foreign bank must have been operating for at least three years and have a credit rating that meets the criteria of the Central Bank of the Russian Federation for operating on the Russian market. Also, to ensure the fulfillment of the branch's obligations, a security deposit of at least 1 billion rubles is required. 
Rights and prohibitions
Branches of foreign banks in the Russian Federation will be able to open and maintain accounts, transfer funds through them — but taking into account the restrictions established for them.
Thus, branches will not be able to open accounts for individuals. Of the transactions with individuals, including individual entrepreneurs, a foreign bank through its branch in the Russian Federation will be able to carry out only the purchase and sale of foreign currency in cash and non-cash forms (but non-cash — only for transfers without opening bank accounts), as well as transfers without opening accounts, including electronic money (except for postal transfers).
Branches will have the right to carry out collection operations, buy and sell currency, and make money transfers. They will also be allowed to issue sureties for third parties and acquire from them the rights of claim concerning the fulfillment of obligations in monetary form. Branches will be able to lease special premises or safes in them to individuals and legal entities for storing documents and valuables.
Branches will not have the right to attract cash and precious metals from individuals and legal entities as deposits; open and maintain accounts in precious metals, conduct transactions with precious metals, coins made of precious metals, processed natural diamonds; carry out trust management of cash and other property of individuals and legal entities.
Branches will also be prohibited from engaging in production, trade and insurance activities. These restrictions do not apply to the conclusion of contracts that are derivative financial instruments in certain cases; to the sale of property acquired to ensure their activities; and for the sale of property sold in the event of foreclosure on the subject of the pledge, or received as compensation.