Page 125 - RusRPTMar23

8.3 Stock market
8.3.1 Equity market dynamics
8.3.2 Dividends dynamics
Billions of dollars are accumulating in Moscow beyond the reach of its foreign owners. Stock dividends, interest payments on bonds and anything else that Western investors didn’t sell before the war — it’s all part of the pile of money that’s been trapped by sanctions.
At a press conference this month, Central Bank Governor Elvira Nabiullina declined to disclose how much money is in special non-resident bank accounts, known as Type C, but said it continues to grow.
Interfax reported in November these accounts hold more than 280bn rubles ($3.7bn), citing regulatory sources. Bank of Russia representatives declined to comment.
Before the war, foreign investments in Russia were substantial, amounting to around $150bn of stocks and government bonds, data from the Moscow Exchange and Bank of Russia show. For instance, JPMorgan Asset Management’s Emerging EMEA investment trust told clients that the Russian companies it held continued to pay dividends, with approximately £6.3mn ($7.6mn) frozen in C-accounts as of January 4, though it stressed the money was not accessible. Another asset manager, East Capital, said it had a total of €13mn ($13.8mn) in the special accounts as of February.
125 RUSSIA Country Report March 2023 www.intellinews.com