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PLC Global Finance update for April 2011: Russian Federation
Practical Law UK Articles 0-505-9919 (Approx. 2 pages)
PLC Global Finance update for April 2011: Russian Federation
by White & Case LLP
| Published on 05 May 2011 • Russian Federation |
The Russian Federation update for April 2011 for the PLC Global Finance multi-jurisdictional monthly e-mail.
Increased amount of mandatory reserves to be deposited by banks with the Central Bank
On 25 March 2011, the Central Bank issued Directive No. 2601-U increasing mandatory reserves required for various obligations of credit organizations. The Directive entered into force on 25 March 2011.
According to the Directive, starting from 1 April 2011 mandatory reserves for a credit organization's obligations (in rubles or foreign currencies) are as follows:
- Under obligations to non-resident legal entities: 5.5%.
- Under obligations to individuals: 4%.
- Under other obligations: 4%.
Russian banks will no longer be considered strategic companies by virtue of holding cryptographic licences
On 23 March 2011, the State Duma adopted in the first reading Draft Law No. 503176-5 amending the Strategic Investments Law.
The Draft Law aims to remove excessive administrative barriers for foreign investors in Russia. In particular, activities involving distribution and maintenance of cryptographic means and rendering services involving information encoding performed by banks will no longer be considered strategic (unless the Russian Federation is a shareholder in the relevant bank).
The provisions of the Draft Law will apply if adopted by the State Duma in three readings, approved by the Federation Council, signed by the President, and officially published.