Russian to limit, then block, retail investors from buying shares from 'unfriendly' countries

Beginning on October 1, Russia's Central Bank will limit the number of shares issued by “unfriendly” countries that private investors can purchase, the bank announced on Tuesday. The maximum percentage of investors’ portfolios that can consist of shares from “unfriendly” countries — Ukraine, EU members, the U.S., and a few others — will be gradually lowered each month until 2023. Beginning in January, brokerage companies have been instructed not to fulfill orders for shares issued by companies in “unfriendly” countries at all.

According to the bank, the new policy is aimed at reducing risk for retail investors by decreasing the portion of their portfolios that can be blocked without warning. According to Russian authorities, five million investors have had their assets frozen.