What is the estimated value of frozen foreign shares held by Russians?

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Estimated Value of Frozen Foreign Shares Held by Russians

Approximately 6 trillion roubles, equivalent to RM484 billion, is the estimated value of foreign shares held by Russians that have been frozen. This situation arises from a combination of Western sanctions and restrictions imposed by Russian authorities and trading platforms on foreign assets.
Impact of Sanctions and Restrictions

The freezing of these foreign shares stems from the broad Western sanctions implemented following Russia's actions in Ukraine. Concurrently, Russian domestic authorities and financial platforms have also imposed limitations on trading foreign assets. This dual impact has led to a significant portion of Russian investors' holdings becoming inaccessible.
Central Bank's Estimate

The estimate of 6 trillion roubles (RM484 billion) for frozen foreign shares was provided by Vladimir Chistyukhin, the first deputy governor of Russia's central bank. This figure highlights the substantial scale of assets affected by the current geopolitical and financial climate.
Government's Proposed Solution

In response to this situation, Russia's Finance Ministry is reportedly developing a system to allow investors to hold two Individual Investment Accounts (IIAs). This proposed change in law, which currently permits only one IIA per person, aims to address the issue of frozen assets occupying tax-beneficial investment allowances within existing accounts. The intention is to enable investors to utilise their primary accounts for domestic assets without the frozen foreign holdings diminishing their tax-free allowance capacity.

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What is the estimated value of frozen foreign shares held by Russians?

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