Tax Alert 9/96 - 'T' And 'S' Accounts

1. In this Tax Alert we review a letter of the Central Bank of the RF of 8 July 1996 No. 295 which introduces a number of changes to the procedures for operating Rouble bank accounts by non-residents, describe the new Central Bank Instructions providing for access by foreign investors to the market in Russian state securities, and also cover the issue of the licensing of hard currency contributions into Russian enterprises by foreign investors .

ROUBLE T - ACCOUNTS

2. The letter of the Central Bank of Russia (further referred to as 'CBR') introduced several amendments to CBR Instruction 3/4 16. From now on, non-residents having rouble accounts opened with authorised banks are allowed to transfer roubles from T-accounts to I-accounts - previously strictly prohibited, although transfers of roubles from I-accounts to T-accounts were allowed. The transferred funds may be converted into hard currency for repatriation.