By Swann Collins, investor, writer and consultant in international affairs – Eurasia Business News. August 31, 2024. Article no 1202.

US Treasury building in Washington D.C., United States. Photo credit : Eurasia Business News.

At the end of 2023, American investors owned $30.49 billion worth of Russian securities, including $28.6 billion worth of shares, compared to $83.8 billion worth of securities at the end of 2021, including $69.2 billion worth of shares, reported the U.S. Treasury.

U.S. investors as of December 31, 2023 owned Russian securities worth $30.496 billion: shares worth $28.630 billion and long-term debt bonds worth $1.866 billion, according to preliminary data from the U.S. Treasury Department and the Federal Reserve System (Fed) of the country.

At the end of 2022, U.S. investors had $29.907 billion worth of Russian securities: $25.958 billion worth of stocks and $3.949 billion worth of long-term debt bonds.

At the end of 2021, they owned $83.849 billion worth of Russian securities, including $69.234 billion worth of shares and $14.615 billion worth of long-term debt bonds.

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The market value of the frozen portfolio of U.S. investors in Russia has grown due to a combination of the exchange rate (the ruble against the dollar fell by 22% in 2023) and the growth of the Russian ruble stock index. The Russian stock market RTSI index rose by 11.63% at the end of 2023 – from 970.6 to 1083.48 points.

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Since 2022, the Russian assets of foreigners have been accumulated in type C accounts.

Type C account is a special account that can be opened for a non-resident investor in a Russian bank, with a broker, in the depository to which only rubles can be credited, for example, dividends on shares and coupons on bonds in rubles. It is impossible to withdraw funds from it, it can only be used for a limited range of purposes, such as paying taxes or buying OFZs. At the same time, the Central Bank and the Ministry of Finance can issue a separate permit to credit such profits to a regular account or to convert rubles into currency.

As of November 2022, the total amount of funds in type C accounts in the Central Bank of Russia was estimated at more than ₽ 280 billion (€ 2,8 billion). In April 2023, the Russian Deputy Finance Minister Alexei Moiseev said that the total volume of assets in type C accounts is comparable to the volume of frozen Russian assets abroad.

The U.S. Department of the Treasury and the Department of State released on August 23 new sanctions against 400 individuals and entities both in Russia and outside its borders—including in Asia, Europe, and the Middle East—whose products and services enable Russia to sustain its war effort and evade sanctions.

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© Copyright 2024 – Eurasia Business News. Article no. 1202.