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Non-residents withdraw their assets from brokerage accounts in Russia
Non-residents withdraw assets from brokerage accounts in Russia.
Most of the assets were withdrawn by clients in foreign countries, including the Virgin Islands, Panama and Belize. Client assets in Azerbaijan, Uzbekistan and Kazakhstan also declined.
Non-resident assets in Russian brokerage accounts fell by almost 10% for the first time in two years and amounted to about 1.8 trillion rubles at the end of the second quarter, Kommersant writes, citing Central Bank data.
Most of the assets were withdrawn by clients from international maritime regions and neighboring countries. The most significant decline was in assets held in brokers’ clients’ accounts in offshore zones, including the Virgin Islands, Panama and Belize. Client assets in Azerbaijan also fell by 65%, in Uzbekistan by 30% and in Kazakhstan by 20%.
Withdrawn funds are transferred within offshore zones and to alternative jurisdictions. Alexander Timofeev, director of financial markets and macroeconomic analysis at the investment company Eastern Gate, noted:
The US Treasury Department's permission to suspend operations on the Moscow Exchange expired on October 12. In all cases, both the increase and decrease in other non-resident accounts were provided for by the organization.
Countries such as Singapore, Seychelles and Saudi Arabia retained their appeal. The total number of non-resident accounts with Russian brokers grew by about 2% to 30.5 thousand, mainly due to individual investors.