The Executive Order was signed to protect the national interests of the Russian Federation and ensure its financial stability in connection with the unfriendly actions undertaken against international law by the United States, joined by other foreign states and international organisations, aimed at introducing restrictions on citizens of the Russian Federation and Russian legal entities.
According to the Executive Order, part of the assets of foreign investors blocked in the Russian Federation may be exchanged for frozen Russian assets. The Executive Order prescribes a procedure for selling foreign securities that belong to Russians to foreigners, including those from unfriendly countries, by using financial assets of these foreigners in the C type bank accounts envisaged by the Presidential Executive Order of March 5, 2022, On the Temporary Procedure for Meeting the Obligations to Certain Foreign Creditors.
In accordance with this Executive Order, the total initial value of the alienated foreign securities belonging to one resident cannot exceed 100,000 rubles. The terms for trading securities to perform relevant transactions shall be established by the Government Commission on Monitoring Foreign Investment.