Assessment of Blocked Financial Assets in Order to Develop Measures to Support Investors
https://doi.org/10.26794/2587-5671-2024-28-5-71-82
Abstract
The rights of Russian investors owning foreign financial assets were violated as a result of the introduction of foreign sanctions, which blocked these securities for an indefinite period. This problem is widely discussed both in the professional environment and at the state level, and a search is underway for ways to solve the current situation.
The purpose of this paper is to propose specific tools for working with blocked financial assets — assessing their value, profitability of formed portfolios, taking into account risk.
The authors have developed a model for assessing blocked foreign securities, taking into account sanctions risk, while this risk is considered a type of credit risk. As a result of implementing the model, the fair value of blocked assets is determined, which can be used to determine the value of portfolios containing blocked securities; when creating special insurance and credit products aimed at protecting the rights and income of investors, as well as when the regulator develops recommendations for assessing blocked assets for further work with them.
Keywords
valuation of financial assets,
protection of investors’ rights,
sanctions,
blocked assets,
foreign financial assets,
investors’ risks,
mutual insurance,
investor support
JEL: G11, G14, G15, G17, G22
About the Authors
M. A. Rastorguev
Brokercreditservice Management Company
Russian Federation
Competing Interests:
Russian Federation
Maxim A. Rastorguev, Head of Department
Risk Management Department
Moscow
Competing Interests:
The authors have no conflicts of interest to declare
A. Yu. Alеshina
Lomonosov Moscow State University
Russian Federation
Competing Interests:
Russian Federation
Alena Yu. Aleshina, Cand. Sci. (Econ.), Assoc. Prof.
Faculty of Economics
Moscow
Competing Interests:
The authors have no conflicts of interest to declare
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For citations:
Rastorguev M.A., Alеshina A.Yu. Assessment of Blocked Financial Assets in Order to Develop Measures to Support Investors. Finance: Theory and Practice. 2024;28(5):71-82. https://doi.org/10.26794/2587-5671-2024-28-5-71-82
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