Putin instructs to think over a “more flexible” mechanism for working with funds on accounts “C”

Russian President Vladimir Putin will instruct the Cabinet of Ministers to think over more flexible mechanisms for handling funds that fall into accounts for non-residents from unfriendly jurisdictions (accounts “C”). The head of state made a corresponding statement at the congress of the RSPP.

“I understand that this is (blocking of funds on accounts“ C .—“b”) to a certain extent limits the opportunities of our conscientious friends and partners who have worked, are working and want to work further. We must somehow correct our position… I will ask the government to think it over,” Mr. Putin said.

In addition, the President of the Russian Federation intends to instruct the Cabinet of Ministers to think about a “more flexible situation” regarding the payment of dividends to non-residents. “But on the condition that these funds will be directed, among other things, and perhaps, and above all, to the development of business within Russia,” Mr. Putin pointed out.

From March 5, 2022, all payments in favor of persons from unfriendly states are made to a special account opened with a Russian bank. To withdraw funds from special account C, you need permission from the Government Commission for the Control of Foreign Investments. On February 24, Bloomberg reported that “billions are accumulating” in the accounts of foreign investors in Moscow.

Grigory Leiba