PROCEDURE OF ACQUISITION OF TITLES TO FOREIGN SECURITIES BY A NATURAL PERSON - RESIDENT OF RF
1.1  Subparagraph 1.1.11. of para. 1 of the Regulation No. 39 dated April 24, 1996, On the Procedure for Certain Types of Currency Transactions in the Russian Federation and on Accounting and Accounts Thereon (approved by Order of the Central Bank of Russia No. 02-94 of April 24, 1996) (hereinafter - "the Regulation") stipulates that pursuant to the requirements established, in particular, in paragraphs 7 and 8 of the Regulation, the following currency transactions may be carried out without the Bank's of Russia permission:
-    remittance by a natural person - resident of the Russian Federation, including to an account opened without the Russian Federation in a manner prescribed by the bank of Russia, of foreign currency in the amount not exceeding $ 75,000 in a calendar year with the view to acquiring titles to foreign securities;
-    remittance to Russia by a natural person - resident of the Russian Federation of foreign currency received from exercising of his rights to the above mentioned securities;
-    acquisition and alienation by a natural person - resident of the Russian Federation of titles to foreign securities in a manner prescribed in the above-mentioned paragraph.
Subparagraph 1.1.25., para. 1 of the Regulation stipulates that natural persons - residents of RF may remit foreign currency from the Russian Federation, without the Bank's of Russia permission, to their accounts opened with foreign banks in a manner prescribed by the bank of Russia and vice versa, namely, to the Russian Federation - from their accounts with foreign banks opened in the manner prescribed by the Bank of Russia, excluding the cases specified by subparagraph 1.1.11 of the Regulation.
1.2.  Application of the above provisions was clarified in the Letter of the Central Bank of the Russian Federation Generalization of the Practices of Application of the Bank's of Russia Normative Acts on the Foreign Exchange Regulation and Controls (Vestnik Banka Rossii (Bulletin of the Bank of Russia), No. 24, dated 24.04.2002).
The Bank of Russia provided the following clarification of the issue whether there are any restrictions of the types of securities (including shares and other emissive securities) which may be acquired by natural persons - residents by foreign currency remittance from the Russian Federation pursuant to foreign exchange laws.
The Law of the Russian Federation On Foreign Exchange Regulation and Control and the Regulation of the Bank of Russia No. 39 do not provide for any restrictions for types of foreign securities (shares included) which are acquired by natural persons - residents pursuant to the above regulations irrespective of their share in the authorized capital.
The subject of an investment is attributed to securities pursuant to laws of the country of issue thereof.
2.  Rules for Currency Transactions
Currency transactions provided for by the Regulation are consummated by a cashless settlement via residents' currency accounts opened with authorized banks.
Foreign currency remittance may be effected from residents' currency accounts opened with authorized banks to currency accounts of non-residents opened both with authorized banks and with banks outside the Russian Federation.
Such currency remittance in transactions provided for by the Regulation may also be effected to residents' accounts opened with authorized banks, from currency accounts of non-residents opened both with authorized banks and outside the Russian Federation (para.7 of the Regulation).
In currency transactions provided for in the Regulation legal and natural persons should submit to the authorized bank servicing the account via which a respective transaction is effected the documents confirming existence of the grounds for the currency transactions following the procedure established by the Regulation (hereinafter - "the confirming documents") (para. 8 of the Regulation).
The confirming documents comprise agreements (covenants, contracts) concluded by drawing up a single document signed by the parties or by exchange of documents by mail, telegraph, teletype, electronic mail or other types of communication, and the documents confirming the fact of delivery of goods, labor, services, intellectual activities' outcome, claims, acts of judicial and other authorized administrative bodies, as well as other confirming documents (para. 8.1. of the Regulation).
The confirming documents specified in para. 8.1. of the Regulation may be submitted by legal and natural persons to an authorized bank by electronic exchange of the documents. In this case a procedure of acknowledgment of the analogue of an autograph is established between a legal or natural person, on the one part, and the authorized bank, on the other part, and an agreement on the procedure and terms and conditions of its use is entered into.
In case of foreign currency remittance from an account, the confirming documents should be submitted prior to a currency transaction, and in case of receipt of the foreign currency to an account - within seven calendar days from the date the foreign currency was entered in the account (para. 8.2. of the Regulation).
In currency transactions provided for in subparagraph 1.1.11, para. 1 of the Regulation (except for remittance of foreign currency from RF by natural persons - residents to their accounts opened outside RF in a manner prescribed by the Bank of Russia), apart from the confirming documents the natural persons - residents should submit to the authorized bank servicing the account via which a respective transaction is effected an application of a natural person - resident or his representative (hereinafter - "the Application").
When natural persons - residents remit, pursuant to subparagraph 1.1.11, para. 1 of the Regulation, foreign currency from the Russian Federation to their accounts outside the Russian Federation opened in a manner prescribed by the Bank of Russia, and effect currency transactions provided for in subparagraph 1.1.25, para. 1 of the Regulation, they should submit to the authorized bank servicing their account via which a respective transaction is carried out the Application only.
The form of the Application is established by the authorized bank on their own with due regard for the requirements to the content of the Application, specified in Attachment 3 to the Regulation (para. 8.3. of the Regulation).
The authorized bank may refuse to write off the foreign currency from the resident's and non-resident's accounts for a currency transaction provided for in the Regulation, if the confirming documents or the Application have not been submitted, as well as in other cases established by the Bank of Russia (para. 8.4. of the Regulation).
Settlement of accounts in currency transactions specified by the Regulation, for the amount not exceeding the equivalent of $ 2,000 per one currency transaction is permitted without submission of the confirming documents. In this case a reference to the respective currency transaction provided for by the Regulation should be made (in remittance from the account) in the settlement document or (in case of the currency receipt to the account) in the document (of free form) to be submitted by the client within seven calendar days from the date of entering the foreign currency in the account (para. 8.5. of the Regulation).
If natural persons effect currency transactions specified in the Regulation for the amount exceeding the equivalent of $ 10,000 per one currency transaction, as well as the transactions provided for, in particular, in subparagraphs 1.1.11 and 1.1.25.of para 1.1 thereof, they should submit to the authorized bank a certificate of registration with tax authorities.