Brokers express readiness to reacquire assets from clients whose holdings have been blocked by Western sanctions, a stance echoed in remarks attributed to Alexey Timofeev, the president of the National Association of Stockbrokers (NAUFOR). These discussions, reported by RBC Investments, reflect a market reality where liquidity constraints press brokers to consider repurchasing restricted securities when opportunities arise. Timofeev notes that in practice the willingness to buy back blocked pieces can be strong, but the transaction prices tend to reflect significant uncertainty about when and how the assets might be released. The discount on the value of these securities is typically substantial, driven by the unclear timeline and the potential changes in regulatory and market conditions affecting unblockings. (Source: NAUFOR)
Timofeev further clarifies that such repurchase deals are constrained by a high degree of risk. The prospect of unlocking client assets carries uncertainties that can widen price gaps and complicate settlement timelines, making large discounts a practical reality rather than an exception. Market participants acknowledge that while liquidity can be restored through these deals, they are inherently opportunistic and contingent on evolving sanctions policies and enforcement actions. (Source: NAUFOR)
Despite the openness to buy back blocked assets, Timofeev cautions against expecting uniform guidance on timing: whether to sell now or wait for legal unblocking remains a nuanced decision. He advises private investors seeking to restore asset liquidity to explore licensing routes within the European Union framework, a path that several entities have pursued as part of broader asset recovery strategies. While the National Settlement Depository (NSD) is reported to follow similar licensing practices, the duration of such processes remains uncertain, and timelines can vary widely depending on jurisdictional considerations and regulatory approvals. (Source: NAUFOR)
Separately, the Bank of Russia has issued directives asking banks to draft individualized plans for handling assets blocked due to Western sanctions. By August 22, regulators requested comprehensive information about the parent organizations and key subsidiaries involved, signaling a push for greater transparency and coordinated action among major financial institutions. The response among leading Russian banks has been uneven; some institutions have demonstrated readiness to explore approaches for working with frozen assets, while others have expressed concerns about risk, compliance, and the potential capital implications. These developments underscore a broader effort to map safe and compliant pathways for asset management within a constrained sanctions environment. (Source: Bank of Russia)