Sergey Tarasevich has assessed for RBC whether the extension of OFAC’s general licences for certain transactions with Moscow Exchange and its constituent entities will affect private investors whose assets are blocked at Euroclear

The US Office of Foreign Assets Control (OFAC) has extended until 12 October 2024 the licences allowing foreign counterparties to complete transactions with the Moscow Exchange and its constituent entities – the National Clearing Centre (NCC) and the National Settlement Depository (NSD), which have been placed under blocking sanctions.

At RBC’s request, Sergey Tarasevich, Senior Associate of Tax & Administrative law practice at Maxima Legal, assessed whether the extension of  the US licences will affect the ability to work with the Moscow Exchange under the sanctions on private investors whose assets are blocked in Euroclear.

“The sanctions imposed primarily affected foreign currency assets, as well as settlements in foreign currency. Private investors were hardly affected, except for the inability to purchase some foreign currencies on the stock exchange, as well as changes in the calculation of exchange rates. Accordingly, the extension of terms for private investors does not play a significant role,” the expert explained.

At the same time, Sergey is convinced that the extension of OFAC general licence will not affect Euroclear’s position in any way. “I doubt that private investors will be able to unblock assets only with the licence of the Treasury of Belgium, the general licences are still aimed at termination of relations with the Moscow Exchange and its constituent structures in a certain period of time, and unblocking the assets of private clients is of a different nature,” Sergey Tarasevich concluded.

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