On 3 January 2024 a new Presidential decree No. 8 (“Decree No. 8”), which supplements Presidential decrees No. 95 dated 5 March 2022 and No. 665 dated 9 September 2023 regarding the regulation of special accounts of type “C” and type “I”, entered into force.
The regulation of the “C” type account is established by the Decision of the Board of Directors of the Bank of Russia dated 8 March 20221. This account is used to fulfill obligations exceeding 10 million rubles per calendar month to foreign creditors related to foreign “unfriendly” states. The “C” type account is also used for making transfers to it from other “C” type bank accounts, special brokerage accounts of “C” type, clearing bank accounts of “C” type.
The regulatory regime of the “I” type account is also established by the Decision of the Board of Directors of the Bank of Russia dated 15 September 20232. This account is used for settlements on the debt obligations of the Russian Federation issued in government securities, the nominal value of which is specified in foreign currency (Eurobonds of the Russian Federation). Type “I” account is opened with the central depository (National Settlement Depository) and is held in rubles.
Decree No. 8 supplements the rules for the use of these accounts and states that assets held in “C” and “I” accounts cannot be foreclosed under enforcement documents, arrested or be subject to other interim measures.
An example of arrest of the assets held in “C” and “I” type accounts is the interim measures taken in a claim filed by Ingria Management Company and Yuri Vasilyev, CEO of Euroinvest Investment Company, against Euroclear3. The interim measures were later revoked as excessive, and Decree No. 8 finally removes uncertainty about the possibility of imposing restrictive measures on assets and securities held in “C” and “I” accounts.
1 Decision of the Board of Directors of the Bank of Russia on the establishment of the “C” account regime for the purposes of fulfillment of resident's obligations to a non-resident established in the Decree of the President of the Russian Federation No. 95 dated 5 March 2022 “On Temporary Procedure for the Execution of Obligations to Certain Foreign Creditors”
2 Decision of the Board of Directors of the Bank of Russia on establishing the “I” account regime
3 https://kad.arbitr.ru/Document/Pdf/cfe45390-aa38-4728-ae9d-5050883f19e9/f86fa1d8-dc4b-4773-bf19-e589b3400a0c/A56-100550-2023_20231127_Opredelenie.pdf?isAddStamp=True