Other services - Russia

11.01.2019

Securities lending and borrowing

Russian equities and government and municipal bonds qualify for CBL’s securities lending and borrowing programme.

Russian corporate bonds are not eligible for CBL’s securities lending and borrowing programme.

Cash services

Payment processing

The RUB cash clearing system is based on five sessions at the Central Bank of Russia throughout the day, as follows:

Processing schedule (Moscow time)

Session 

Processing of electronic documents

Reporting of processing results

Cycle 1

05:00 - 06:00

From 06:00

Cycle 2

09:00 – 10:00

From 10:00

Cycle 3

11:00-12:00

from 12:00

Cycle 4

14:00-15:00

from 15:00

Cycle 5

16:00-17:00

from 17:00

Cycle 6

18:00-20:00

from 20:00

Final

21:00-22:00

from 22:00

The Banking Electronic Speed Payment System (BESP) is the Bank of Russia's real-time gross settlement system, and it operates on a gross-basis.

All payments exceeding RUB 100 mn must be processed via BESP. The system is operational between 04:00 and 21:00. The formats for cash settlement are compatible with international SWIFT standards.

Note: Sberbank of Russia processes all SWIFT outbound cash instructions via BESP on behalf of CBL’s participants, even when the SWIFT outbound cash instructions are less than RUB 100 mn.

CBL and Sberbank of Russia cannot guarantee  which system will be used  for SWIFT inbound cash instructions from Russian external counterparties.

To avoid delays and to ensure the execution of their payments on the expected VD, customers are required to instruct and fund according to the standard deadline for executing same-day payments or sending pre-advices of incoming funds, as set out in the Clearstream Banking Cash Timings Matrix.

MT202 examples:

Transfer of own funds between a CBL account and an entity with an account with Sberbank of Russia

Transaction Reference Number:

:20:transaction reference number

Related Reference:

:21:related reference

Value Date, Currency Code, Amount:

:32A:value date YYYYMMDD, currency code RUB

Ordering Institution:

:52A:/BIC of the Ordering Institution; or

:52D:/Ordering Institution’s name (mandatory) and account number (optional)

Beneficiary Institution:

:58A:/account number (20 digits)
BIC of the beneficiary institution holding account with Sberbank; or

:58D:/account number (20 digits)
Name of the beneficiary institution

Sender to Receiver Information:  

:72:/BNF/VOxxxxx (VO Code + 5 digits)

Short description of payment purpose

Transfer of own funds between a CBL account and a Russian counterparty that has an account with a cash correspondent other than Sberbank of Russia

Transaction Reference Number:

:20:transaction reference number

Related Reference:

:21:related reference

Value Date, Currency Code, Amount:

:32A:value date YYYYMMDD, currency code RUB

Ordering Institution:

:52A:/BIC of the Ordering Institution; or

:52D:/Ordering Institution’s name (mandatory) and account number (optional)

Account with Institution:

:57A:/BIC of the Beneficiary’s Russian bank

Beneficiary Institution:

:58A:/account number (20 digits)
BIC of the Beneficiary Institution; or

:58D:/account number
INN code of the Beneficiary (if resident)
Beneficiary’s name (holder of account with the Russian bank indicated in field :57A:)

Sender to Receiver Information:

:72:/BNF/VOxxxxx (VO Code + 5 digits)

Short description of payment purpose

Transfer of funds from Russian domestic counterparty to CBL account

Intermediary:

:56A/:SABRRUMM012; or

:56D://RU044525225.30101810400000000225
SBERBANK OF RUSSIA MOSCOW RUSSIAN FEDERATION

Account with Institution:

:57A:/30111810200000001300
CEDELULLXXX; or

:57D:/30111810200000001300
Clearstream Banking S.A. Luxembourg

Beneficiary Institution:

:59A:/account number with CBL (5 digits)
BIC related to the CBL account number (if known)

Sender to Receiver Information:

:72:/BNF/VOxxxxx (VO Code + 5 digits)
Short description of payment purpose

New issues distributions

In order to be credited with securities resulting from a distribution, customers must receive their pre-advised funds on their CBL cash account as indicated above. Customers failing to do so will incur any and all costs related to the late distribution.

Summary

  • Customers must ensure that their cash account with CBL is provisioned fully and in a timely manner.
  • Customers paying RUB to external Russian domestic counterparties should ensure that their MT103 and MT202 provides certain details such as Transaction type (VO) code and description of payment purpose (for example, transfer counterparty, own money transfer, FX deal, money market deal, invoice payment etc.) to comply with currency control requirements.
  • In the absence of sufficient provisioning, payments will not be released but will be put on hold until receipt of the required funds.
  • Pre-advices of incoming funds that are not covered during the day will be cancelled after one day in the CBL system.
  • Customers are strongly recommended to continue pre-advising their incoming funds as per regular practice.

Consequently, and under the current Russian market infrastructure and market practice, to ensure that payments are processed smoothly on the expected VD, incoming funds must be made available by VD-1 at the latest.

Receipt of funds at Sberbank of Russia, Moscow

When paying an amount in RUB to Sberbank of Russia, Moscow in favour of CBL, CBL customers should ensure that their cash correspondent bank provides the following details:

  • BIK of Sberbank of Russia, Moscow - BIK044525225;
  • Account number of Sberbank of Russia, Moscow at the Central Bank of Russia - 30101810400000000225;
  • Account number of CBL (as beneficiary) at Sberbank of Russia, Moscow - 30111810200000001300;
  • The CBL customer and the CBL 5-digit account number to be credited;
  • INN code - //INN7707083893 (optional: not required by CBL but may be required by the CCB);
  • CBL KIO code - 22288 (optional: not required by CBL but may be required by the CCB);
  • Transaction type (VO) code (see attachment below) and description of payment purpose (for example, funds transfer) to comply with currency control requirements.

Restrictions

RUB is a fully convertible settlement currency but, in order to mitigate risk associated with performing unauthorised FX operations through unauthorised banks, CBL customers will not be authorised to hold foreign currency in Russia, nor will they be given lines (clean or backed) in RUB for purposes other than settlement related operations through or within CBL.

Foreign exchange

There are no specific rules or legislation related to foreign exchange.

Disclosure requirements

CBL may at any time be required by national and/or local administrative and judicial Russian authorities or entities to disclose information about CBL customers and/or beneficial owners holding positions in Russian securities. Details to be provided may vary and CBL will, where relevant, contact its customers to collect the requested information.

By holding Russian securities with CBL, customers must grant and are hereby deemed to grant CBL the authorisation to disclose their name, address and their respective holdings (or any other relevant information) in relation to Russian securities to Russian administrative and judicial authorities or entities, as and when requested. Customers who are either unable or not permitted to disclose beneficial owner information or any other requested information must not hold Russian securities in CBL. Any penalty or loss faced by CBL as a result of non-disclosure by a customer will be immediately passed on to the non-compliant party.

Holding restrictions

Please refer to the Investment regulation section of the Market Profile - Russia.

Note: Prior approval of the Federal Anti-Monopoly Service (FAS) is required whenever an individual, company or group of companies acquires:

  • Over 20% of the voting equity interests (for example, shares in stock companies or allotments in limited liability companies) of a Russian “business entity” (that is, a stock company or a limited liability company). This rule applies even if the acquirer already has more than 20% of the voting equity interest in the company;
  • Rights to “determine the entrepreneurial activity” of a Russian business entity, or to function as the management body thereof.

For further information on the acquisition of local bank shares, customers should contact Clearstream Banking’s Corporate Action Department directly:

Tel:+49 (0) 69 2 11-1 53 40or+49 (0) 69 2 11-1 53 24
Fax:+49 (0) 69 2 11-1 42 40or+49 (0) 69 2 11-1 40 90

Tax services

Please refer to the Taxation section of the Market Profile - Russia.

Compliance

The customer acknowledges and accepts its obligation to comply and ensure compliance by any of the customer’s underlying clients, up to the ultimate [legal and] beneficial owner, with any applicable law, regulation, sanction, order, judgment, injunction, asset freeze, blocking regulation or order or any other act or action of, or by, any national or foreign government, authority, court, (self-) regulatory organisation, government agency or instrumentality of government, including, but not limited to, investment and holding restrictions applicable to any of the customer, its underlying clients or CBL. The customer shall not, by action or inaction, cause CBL to violate any applicable Regulation and shall be liable for and hold CBL harmless against any direct or indirect loss, claim, damage, liability or expense, imposed on or incurred by or asserted against CBL in connection with any actual or alleged non-compliance with the aforesaid by the customer or any underlying client of such customer up to the ultimate [legal and] beneficial owner.