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Bank of Russia introduces amendments to C-type accounts regime

legal updates
20 / 12 / 2023
On 8 December 2023, the Board of Directors of the Central Bank of Russia made a decision to amend the decision of 21 December 2022 whereby a special rouble C-type account regime was adopted (“Decision”).

A change to the C-type accounts regime is caused by the need to comply with Presidential Decree No. 844Decree of the President of Russia No. 844 dated 8 November 2023 “On Additional Temporary Economic Measures Relating to the Circulation of Foreign Securities”, which granted Russian investors the right to sell “frozen” foreign securities to persons from unfriendly states at the expense of the funds credited to a C-type account.

In addition to the changes relating to the ability to withdraw funds from C-type bank accounts for the purpose of purchasing foreign securities, the Decision also touches upon the issue of withdrawing funds for the purpose of paying taxes, duties, levies and other mandatory charges as may be due under Russian fiscal legislation (“Mandatory Charges”):

  • refunded amounts of Mandatory Charges may be credited to the C-type bank accounts (whether opened by residents or non-residents);
  • a C-type bank account opened for a resident may not be used for paying Mandatory Charges; and
  • Mandatory Charges that are due under Russian fiscal legislation from a non-resident client may be withdrawn from a C-type brokerage account.
Furthermore, now non-residents cannot purchase federal government bonds on a secondary market using the funds credited to a C-type account.

These targeted changes to the C-type accounts scheme are, in the first place, aimed at stabilising the rouble and the Russian financial system in general.