Russia bans coupon payments to foreigners holding rouble bonds
02/03/2022 08:44
MOSCOW, March 2 (Reuters) - Foreign investors are
effectively stuck with their holdings of rouble-denominated
bonds, known as OFZs, after the Russian central bank put a
temporary halt on coupon payments and a major overseas'
settlement system stopped accepting Russian assets.
The National Settlement Depositary (NSD), a Russian version
of the world's biggest settlement systems, Euroclear and
Clearstream, said it was limiting payment options on Russian
securities for foreign individuals and companies, as well as a
right to transfer such securities, in line with a central bank
request.
On Monday, the Bank of Russia ordered depositories and
registries operating on the securities market to freeze security
sales by foreigners. It did not specify how long the curb would
last. urn:newsml:reuters.com:*:nL8N2V3815
The move to shut down trading in Russian assets are part of
wider measures by Moscow to shore up its financial system after
Western countries levied a raft of economic sanctions to punish
Russia for its invasion of Ukraine. urn:newsml:reuters.com:*:nL1N2V50G9
Belgium-based Euroclear said in a note on Tuesday that it
will no longer accept the rouble as a settlement currency,
effectively shutting off an exit route for overseas investors.
Euroclear said the NSD had blocked its accounts as a result
of the central bank measures.
"To the extent legally permissible, you should wire out any
remaining long balances in roubles as soon as possible," it
said. urn:newsml:reuters.com:*:nL1N2V411J
Euroclear said it would immediately disable its account at
its Russian correspondent bank, Dutch group ING.
(Reporting by Moscow Newsroom; Editing by Carmel Crimmins)