NEW – August 22, 2022
1. The subcommittee of the governmental Control of Foreign Investments Commission (CFIC) unanimously decided “to allow residents/individuals to transfer funds related to the receipt of dividends on shares of Russian joint stock companies or the distribution of profits of Russian LLCs … to accounts (deposits) opened outside the Russian Federation … in subsidiaries of (Russian) authorised banks within the limits ($1 million monthly) of the Bank of Russia.
2. At the end of July, the Central Bank estimated the scale of capital withdrawals from Russia in 2022 at $243 billion, without supporting the validity of such prospects with statistical data or analytical calculations. Taking into account the decision of the CFIC, it becomes clear that we are talking about a systemic solution that the Central Bank had in mind when announcing such an unprecedented outflow of capital, dealing a severe blow to the domestic financial system and draining the investment potential of the real sector of the economy.
3. We received an explanation and an absurd decision by the criteria of economic logic of the majority of joint-stock companies not to pay dividends at the end of the year (estimated 1.5-2 trillion rubles). They mostly deposited these resources, waiting for the success of lobbyists preparing the mentioned CFIC decision. In the near future, a wave of decisions on the payment of interim dividends will follow, which will include deferred amounts. Taking into account the practice when the owners, including non-residents, of the largest companies (for example, Lisin) have dozens and hundreds of nominal holders of shares holding them in controlled depositories, the scale of the withdrawal of resources abroad can be up to $10 billion per month, which in terms of a year will be match the forecast of the Central Bank. At the same time, delisting on the London Stock Exchange will be bypassed, the introduction of which was actively resisted by Russian oligarchs.
4. Simultaneously with the lifting of restrictions on the withdrawal of dividends, the US Treasury removed from the sanctions the transactions necessary to close individual accounts in sanctioned financial institutions – that is, in order to close an account in a Russian foreign daughter, to which millions of dollars of dividends are transferred, it is necessary to transfer them to other banks. In practice, this means that funds withdrawn to the account of foreign subsidiaries of Russian banks can be used completely freely, including in the interests of foreign corporations/holders of Russian shares through resident individuals.
5. The situation around the lifting of the ban on the withdrawal of dividends can be considered as a classic example of how, in coordination with the US Treasury, the liberal-monetarist bloc sabotages and undermines the systemic decisions of the authorities, in the interests of oligarchic corporations and globalist speculative financial capital. In this case, the sub-commission, a division of the primary administrative level, grossly violated the decree of the highest level of administrative power – the President of the Russian Federation from July 05, 2022 No. 430. In accordance with paragraph 3, subparagraph “b” of Decree No. 79 from February 28, 2022, it is prohibited for residents to transfer dividends to their accounts opened with banks and other financial organisations (without exception!) outside the Russian Federation. And the government commission for monitoring the implementation of foreign investments has been given the authority to impose restrictions on the crediting of currency by residents to their accounts. Restrictions, but not permissions! A little more than a month has passed and the average clerks from the government headed by Moiseyev, Siluanov’s trusted deputy, executed the Presidential Decree in exactly the opposite way. Criminal penalties for such a large-scale financial sabotage are not provided for in Russian legislation.
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