Bank of Russia open to relaxing curbs on non-residents transactions if sanctions eased

BY Reuters | ECONOMIC | 11/29/22 12:44 PM EST

MOSCOW (Reuters) - Russia is open to relaxing restrictions on transactions by so-called unfriendly non-residents in exchange for the un-freezing of Russian assets abroad, its central bank said on Tuesday.

Russia implemented capital controls after Western sanctions over Moscow's actions in Ukraine and prevented foreign investors from unfriendly states, those that have imposed sanctions, from selling securities of Russian issuers.

"Requirements for residents can be liberalised as much as possible, while the strictness of requirements for non-residents should differ depending on their jurisdiction," the Bank of Russia said in a report.

Some overseas companies and investors found they had assets essentially trapped in Russia after Moscow responded to Western sanctions with its own restrictions.

"When establishing foreign currency bans and restrictions, the principle of reciprocity should be followed, that is, to introduce bans and restrictions only in relation to residents of those states that have introduced such measures against the Russian Federation," it added.

Russia's central bank said it may consider liberalisation, namely the unblocking of assets, in relation to unfriendly countries in response to the easing of sanctions.

(Reporting by Elena Fabrichnaya; Writing by Alexander Marrow; Editing by Alexander Smith)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article