PRESIDENTIAL DECREE OF THE RUSSIAN FEDERATION

of November 8, 2023 No. 844

About the additional temporary measures of economic nature connected with the circulation of foreign securities

Due to the unfriendly and contradicting international law actions of the United States of America and the foreign states and the international organizations which adjoined them directed to introduction of rationing arrangements concerning citizens of the Russian Federation and the Russian legal entities for the purpose of protection of national interests of the Russian Federation, ensuring its financial stability and according to the Federal Laws of December 30, 2006 No. 281-FZ "About special economic measures and enforcement powers", of December 28, 2010 No. 390-FZ "About safety" and of June 4, 2018 No. 127-FZ "About corrective actions (counteraction) on unfriendly actions of the United States of America and other foreign states" I decide:

1. Determine that transaction (transaction) with foreign securities which belong to residents and are considered on the accounts opened to the central depositary in the foreign organizations as to person which is acting for the benefit of other persons, the property rights to such securities involving transition to nonresidents (including to persons of unfriendly foreign states) and performed at the expense of their money which is on the accounts of type "C" provided by the Presidential decree of the Russian Federation of March 5, 2022 No. 95 "About temporary procedure for obligation fulfillment before some foreign creditors" are made according to the procedure, determined by this Decree.

2. Calculated according to the procedure, established by Russian Government Commission on Foreign Investments, the aggregate initial cost of the foreign securities alienated according to this Decree belonging to one resident cannot exceed 100 thousand rubles.

3. Transactions, the stipulated in Item 1 this Decree, consist by tendering.

4. Conditions of tendering and transactions (transactions), the stipulated in Item 1 this Decree, are established by Russian Government Commission on Foreign Investments.

5. Are established by solutions of the Board of directors of the Central bank of the Russian Federation:

a) procedure and terms of interaction of professional participants of the security market with their clients, managing companies of mutual investment funds and professional participants of the security market with the organizer of the biddings for the purpose of transactions (transactions), the stipulated in Item 1 this Decree, and transactions (transactions) necessary for their making (further - the transaction (transaction) with foreign securities);

b) features of identification of nonresident buyers for the purpose of transactions (transactions) with foreign securities and transactions on the accounts of type "C" and special transit accounts of depot of the owner opened addressed to such buyers;

c) mode of the special transit account of depot of the owner.

6. Professional participants of the security market, managing companies of mutual investment funds do not levy from physical persons - residents payment for transactions (transactions) with foreign securities. The organizer of the biddings does not levy payment for the organization and tendering from the specified physical persons.

7. The foreign securities acquired by nonresidents based on transactions (transactions) with foreign securities are subject to transfer on the special transit accounts of depot of the owner opened by the Russian depositaries addressed to nonresident buyers. The specified securities are charged off special transit accounts of depot of the owner based on orders of nonresident buyers addressed to which such accounts, into the accounts opened in the foreign organizations or on the special transit accounts of depot of the owner opened addressed to other persons are opened.

8. The procedure (execution) of transactions (transactions) provided by the Presidential decree of the Russian Federation of March 1, 2022 No. 81 "About additional temporary measures of economic nature for ensuring financial stability of the Russian Federation" and also requirements of Item 3 of article 27.6 of the Federal Law of April 22, 1996 No. 39-FZ "About the security market" do not extend to transactions (transactions) with foreign securities.

9. Provisions of subitems "b" and "v" of Item 1 of the Presidential decree of the Russian Federation of March 1, 2022 No. 81 "About additional temporary measures of economic nature for ensuring financial stability of the Russian Federation" are not applied to transactions (transactions) involving emergence of the property right to securities (except for transactions (transactions) with the Russian securities and eurobonds, stipulated in Item 11 Presidential decrees of the Russian Federation of March 3, 2023 No. 138 "About the additional temporary measures of economic nature connected with security circulation"), in case of simultaneous observance of the following conditions:

a) foreign securities are considered and stored outside the territory of the Russian Federation in the foreign organization having the right according to its personal law to perform accounting and transition of the rights to securities;

b) calculations for such transactions (transactions) are perfromed according to accounts (deposits) which are opened addressed to residents in the foreign banks or other organizations of the financial market located outside the territory of the Russian Federation, and information on which is opened by residents to tax authorities of the Russian Federation according to requirements of the legislation of the Russian Federation.

10. Persons of unfriendly foreign states are understood as the foreign persons connected with foreign states which make concerning the Russian Federation of the Russian legal entities and physical persons unfriendly actions (including if such foreign persons have nationality of these states, the place of their registration, the place of preferential conducting economic activity by them or the place of preferential extraction by them of profit on activities are these states), and persons who are under control of the specified foreign persons, irrespective of the place of their registration (except as specified if the place of their registration is the Russian Federation) or places of preferential conducting economic activity by them.

11. To the board of directors of the Central bank of the Russian Federation to make the decisions necessary for implementation of this Decree.

12. The solutions of the Board of directors of the Central bank of the Russian Federation provided by this Decree are subject to official publication according to article 7 of the Federal Law of July 10, 2002 No. 86-FZ "About the Central bank the Russian Federation (Bank of Russia)".

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