MOSCOW, July 31 The State Duma has adopted a law allowing foreign banks to open branches in Russia from September 1, 2024, but no more than one.
This will help create conditions for the development of the international settlement system, and will also help attract foreign investment into the Russian economy, the explanatory note says.
Lawmakers are primarily counting on the arrival of banks from friendly countries, although restrictions for unfriendly countries are not spelled out, the head of the State Duma Committee on Financial Markets, Anatoly Aksakov, explained last week.
One bank – one branch
The law allows a foreign bank to open one branch on 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 working 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 will have the right to carry out cash collection operations; buy and sell currency; make money transfers; as well as open and maintain accounts, transfer funds between them — but subject to 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 by 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 be allowed to issue sureties for third parties and acquire from them rights of claim concerning the fulfillment of obligations in monetary form. In addition, 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 funds and precious metals from individuals and legal entities into deposits; open and maintain accounts in precious metals, carry out transactions with precious metals, coins made of precious metals, processed natural diamonds; carry out trust management of funds and other property of individuals and legal entities.
Branches will also be prohibited from engaging in manufacturing, trading and insurance activities. These restrictions do not apply to the conclusion of contracts that are derivative financial instruments in certain cases; for the sale of property acquired to support its activities; and for the sale of property sold in the event of foreclosure on the subject of collateral, or received as compensation.