Announced by the Moscow Exchange, granting access to the stock market to non-residents from friendly countries may open a loophole for larger investors from unfriendly countries. This was told to Izvestia by the personal broker of the investment bank Sinara Timur Bayanov on Tuesday, September 6.
“The access of foreign investors and the easing of the ban could open a loophole for larger investors from unfriendly countries,” he said.
Earlier in the day, the Moscow Exchange announced that it would provide access to operations on the stock market to non-resident clients from friendly countries from September 12. Access will also be granted to non-residents under the control of Russian legal entities or individuals. Those who are connected with unfriendly countries will be able to make transactions with securities, with the exception of shares of strategic and a number of other enterprises, determined by decree of the President of the Russian Federation.
Professional market participants (banks, brokers, management companies) began to register non-resident clients on the Moscow Exchange from August 8. To do this, they must be identified.
Non-residents from countries friendly to Russia account for about $1 billion in Russian assets, this is an insignificant share, said Timur Bayanov.
“I do not expect serious pressure on the stock market, not all foreign investors will immediately start selling shares. On the contrary, the current negative mood of traders and the sale should be considered as a buying opportunity,” the broker said.
In early August, the Moscow Exchange allowed non-residents from friendly countries to operate on the Russian bond market. This opportunity was also provided to non-residents whose ultimate beneficiaries are Russian legal entities or individuals.