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- Do not draw a conclusion: Russians are blocked from returning American securities from Euroclear
Do not draw a conclusion: Russians are blocked from returning American securities from Euroclear
It has become more difficult for Russians to return American securities blocked in the Belgian Euroclear depository. The new restrictions affected investors who had been buying such assets through VTB until 2022, as well as those in whose chain of accounting or securities storage the bank participated, "Izvestia" found out. The reason was the new US sanctions against Iran, which VTB also fell under in September. After that, Russian investors began to receive refusals on applications for unblocking American assets. Why the restrictions affected not only the bank's former clients and what opportunities they still have to return their investments is described in the "Izvestia" article.
Why do I need a US permit to unlock assets in the EU?
Until 2022, Russian investors actively bought foreign securities through domestic brokers. At the same time, the accounting and storage of assets went through the National Settlement Depository (NSD). After the introduction of European sanctions against him, the assets of Russians were blocked in foreign infrastructure.
NSD stored its clients' foreign securities in the Belgian Euroclear depository. It took into account not only European, but also American stocks. At the same time, the securities were eventually listed in US financial institutions.
To unlock foreign assets, a Russian first needs a special license from the Belgian Ministry of Finance. In some cases, funds can be withdrawn after receiving it, but this may not be enough for American securities. Some European brokers require additional authorization from the Office of Foreign Assets Control of the U.S. Treasury Department (OFAC).
It will not be possible to withdraw American securities without his license, explained financial lawyer Olga Plekhanova. Usually, such shares in Russia were bought through a St. Petersburg Bank affiliated with the St. Petersburg Stock Exchange, which was the main platform for trading foreign assets. And in the USA, they were stored in the Bank of New York Mellon or DTC.
The annual turnover of foreign securities on the St. Petersburg Stock Exchange, through which Russians have traditionally invested in American stocks, reached about $393 billion in 2021, said Vladimir Chernov, analyst at Freedom Global. As of November 30, 2022, 5.7 trillion rubles of Russian assets were blocked abroad, more than 20% of which belonged to retail investors.
Until 2025, the Belgian Ministry of Finance generally issued permits for unblocking Russians' funds in Euroclear, while OFAC took a tougher position. It is not publicly known about the cases when the American regulator allowed the withdrawal of securities to Russian investors. The response to the applications can be expected for years, and a significant part of the appeals actually remain motionless.
The last responses to such applications came almost two years ago, but in September 2026, investors began to receive decisions again — already negative and with reference to US sanctions against Iran, said the founder of the international legal service. Razmorozka.com Alexey Bogdanov.
Why sanctions against Iran have hit Russian investors
On August 24, 2026, the US Treasury launched a campaign against Iran and organizations that, according to the American authorities, help circumvent sanctions.
On September 10, OFAC changed its approach to issuing individual licenses under the Iranian sanctions program. Now such applications are considered based on the presumption of refusal, which means that a negative decision becomes the base case.
On September 14, OFAC added VTB to the sanctions list under the Iranian program. After that, investors who had been buying American securities through this broker until 2022 began to face refusals on applications to unlock assets, Alexey Bogdanov said.
At the same time, VTB is also found in the old chains of accounting and storage of assets of Russian investors, Olga Plekhanova clarified. According to her, for some of her clients, the bank is present in the history of securities movements, although investors themselves could purchase them through other financial institutions.
— We are not aware of such communications between regulators and former clients. In general, the situation can only cause regret. ""For our part, we have provided and are providing clients with the necessary consulting support," the press service of VTB My Investments told Izvestia."
Moreover, the circle affected by the new American restrictions is wider than VTB's own customer base, said Freedom Global analyst Vladimir Chernov. A person could buy securities through another broker, but VTB participated in their storage or transfer. Withdrawal of money was also further complicated for such investors.
Historically, VTB was one of the largest brokers in the Russian market and one of the main participants through which foreign securities were purchased or where they were subsequently stored, Dmitry Lesnov noted. Therefore, the range of investors who may have problems obtaining a license to withdraw American assets is quite wide.
OFAC has already started rejecting not only those who initially purchased securities through VTB, but also investors whose bank was somehow present in the custody chain, Alexey Bogdanov confirmed.
This is due to the fact that the U.S. Treasury Department has separately warned foreign financial institutions about the additional risks of continuing to work with VTB after falling under sanctions against Iran, said Vladimir Chernov.
However, there are already egregious cases when VTB was not mentioned in such a chain at all, but OFAC still refused to unblock it, citing Iranian sanctions, Olga Plekhanova emphasized. Therefore, in fact, any Russian investor with American assets may face additional difficulties.
Theoretically, similar problems are possible with the participation of other Russian banks or brokers, because sanctions could potentially expand, Alexei Bogdanov warned.
Are there any chances of unblocking American securities
The prospects for a refund depend primarily on where the assets are located in the end, explained Alexey Bogdanov. If the final storage location is Euroclear (this is the case not only with European, but also with some American securities), then in many cases the permission of the Belgian regulator is sufficient, which is generally feasible to obtain. If the securities are in American depositories, it will not be possible to withdraw them without an OFAC license.
If the investor has already been rejected by OFAC, the decision can be asked to be reviewed, Alexey Bogdanov continued. This procedure is directly provided for by the regulator itself: the applicant can file a new appeal with a reference to the previous case.
Theoretically, OFAC's refusal can be challenged in the US federal court, Alexey Bogdanov added. However, the court itself does not issue a license: at most, it can reverse the decision and return the OFAC issue for reconsideration, which can again drag on for years.
If VTB has never participated in the storage chain at all, the refusal may be erroneous and it also needs to be challenged, Olga Plekhanova noted. In such a situation, it is especially important to confirm the actual asset accounting route and show that the bank was not related to specific securities.
At the same time, obtaining a Belgian and American license remains only one of the stages of a refund, Olga Plekhanova added. After that, you actually need to make the transfer through Euroclear, foreign brokers and banks, and then withdraw the money to Russia. Separate technical and sanctioning obstacles may arise at each stage. Even with the approval of a foreign regulator, VTB's very presence in the old depository chain can complicate the next steps due to increased inspections of foreign financial institutions.
Переведено сервисом «Яндекс Переводчик»
