The Russian Federation may allow the withdrawal of part of the funds received in the form of dividends from “C” accounts

MOSCOW, March 16 (Reuters) – Russian President Vladimir Putin will instruct the government to consider a more flexible mechanism for funds in C accounts with the option of paying out part of the money received as dividends.

“The decision … related to directing dividends to the ‘C’ accounts of foreign companies from those countries that impose sanctions on us … was dictated to protect the interests of our economy and our business,” Putin said at the RUIE congress.

The funds of non-residents from Russia’s “unfriendly” jurisdictions are blocked on special type “C” accounts, including proceeds from securities belonging to them. It is possible to exchange them for currency only with the consent of the Russian authorities.

According to the Bank of Russia, by the end of 2022, about three hundred billion rubles were accumulated on type C accounts.

The blocking of funds on these accounts “limits the possibilities of our diligent friends and partners” who worked in Russia, “work and want to continue working,” Putin said.

“Today we have to correct our position, I will ask the government to think about it,” Putin said.

“Perhaps, think of a more flexible situation where dividends could be paid out and partially paid out, but on condition that these funds will be directed, among others, to and perhaps primarily for the development of business inside Russia,” the president said. (Anastasia Lyrchikova, Elena Fabrichnaya)