The European Commission has prohibited individuals and legal entities from EU countries from participating in an asset exchange scheme proposed by Russia. This is in response to the participation of the National Settlement Depository (NSD), which fell under sanctions after the Russian invasion.
The restrictions state that no funds or economic resources can be provided to NSD either directly or indirectly. The asset exchange scheme permits Russian and foreign investors to propose exchanges of Western securities currently frozen in NSD accounts within EU central securities depositories for assets being held in Russia from unfriendly investors stored in type C accounts, the directorate explains.
Negotiations on the asset swaps between Russian and foreign investors were planned to be held on August 12. Russian investors offered to exchange blocked assets valued at more than ₽35B ($412M).