# Russian central bank gives legal entities green light to trade foreign shares
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-30
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Bank of Russia allows entities to buy shares of
Meta Description: Bank of Russia permits legal entities to purchase securities of countries imposing sanctions against Moscow without restrictions, causing SPB Exchange shares to
URL: https://financedigest.com/russian-central-bank-gives-legal-entities-green-light-to-trade-foreign-shareshtml

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MOSCOW (Reuters) -The Bank of Russia on Thursday gave legal entities the green light to buy the securities of “unfriendly” issuers, those from countries that have imposed sanctions against Moscow, without restrictions.

Shares in SPB Exchange, Russia’s second-largest bourse which specialises in foreign shares, leapt on the news, surging more than 30% on rival Moscow Exchange as of 1534 GMT.

SPB resumed full trading in foreign equities in August. The [central bank’s](https://www.financedigest.com/inflation-trumps-financial-risks-as-central-bank-tightening-set-to-continue.html "Inflation trumps financial risks as central bank tightening set to continue") move could pave the way for brokerages to purchase shares in foreign companies from retail investors.

Legal entities, irrespective of having qualified investor status, will be able to buy securities of unfriendly issuers without restrictions,” a [central bank](https://www.financedigest.com/central-banks-keep-hiking-rates-amid-banking-turmoil.html "Central banks keep hiking rates amid banking turmoil") statement said.

It comes months after sweeping western sanctions, imposed to punish Moscow for its actions in Ukraine, led to the freezing of some of the foreign securities held by [investors in Russia](https://www.financedigest.com/gold-investors-face-bind-over-bars-from-tarnished-russia.html "Gold investors face bind over bars from tarnished Russia").

The central [bank this month said it would gradually limit private investors’](https://www.financedigest.com/stocks-rise-after-bank-sale-fuels-investor-risk-appetite.html "Stocks rise after bank sale fuels investor risk appetite") access to foreign shares issued by companies from designated unfriendly countries from October.

Brokerages will be prohibited from executing any [orders from non-qualified investors that increase their position in such securities](https://www.financedigest.com/fingerprint-cards-ab-signs-partnership-gemalto-secures-worlds-first-volume-order-fingerprint-sensors-dual-interface-payment-cards.html "Fingerprint Cards AB signs partnership with Gemalto and secures the world’s first volume order of fingerprint sensors for dual-interface payment cards") from Jan. 1, 2023.

In a separate statement, the central [bank extended restrictions on transfers abroad from the bank accounts](https://www.financedigest.com/new-legislation-makes-switching-bank-accounts-simples.html "New legislation makes switching bank accounts “simples”") of non-residents from unfriendly countries by another six months until April 1, 2023.

(Reporting by Elena Fabrichnaya and Alexander Marrow; editing by David Evans and Philippa Fletcher)


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