A.        Cashiering Restrictions - Rubles

B.        Customers Who Have Positions in Russian Securities

• Sanctioned Russian Securities

• Non-Sanctioned Russian Securities 

C.        Customers from Certain Regions in Ukraine

• The Luhansk and Donetsk Regions

  • Account Restrictions

• The Kherson and Zaporizhzhia Regions

D.        Customers Who Bank Through Sanctioned Banks

E.         Restrictions Affecting Russian or Belarusian Nationals, Citizens, and/or Residents

• MOEX

• EU Securities Restrictions 

 

A.   Cashiering Restrictions – Rubles

In line with many financial institutions, IBKR is reducing exposure to the Russian Ruble (“RUB”). 

 1.       What are the restrictions on cashiering in Rubles?

Deposits in RUB
IBKR is no longer accepting deposits of RUB.  Any deposit in RUB will be rejected.

IBKR will periodically convert RUB balances to USD or EUR, depending on the IBKR entity with which you have an account.  Please visit the IBKR Knowledge Base for the specifics regarding the currency conversion.

 Withdrawals in RUB
We are currently accepting RUB withdrawal requests.  However, we cannot guarantee that such requests will be processed by our cashiering bank.

 2.       What if the Base Currency of my account is RUB?

IBKR does not currently allow clients to maintain RUB as their base currency.  If you previously used RUB as your base currency, we converted it to USD or EUR depending on which IBKR entity carries your account. (This information can be found in the IBKR Knowledge Base.)

 

B.  Customers Who Have Positions in Russian Securities

The U.S. and other governments have specifically sanctioned certain Russian companies that issue securities, meaning these securities cannot be traded or transferred.  In addition, the U.S. has prohibited the purchase of new and existing debt and equity securities issued by all Russian companies.  As a result, trading in all Russian securities has been either fully or partially restricted.  

1.       What Russian securities have been restricted?

Certain Russian securities subject to specific sanctions were fully restricted on May 25, 2022.  You currently cannot trade or transfer your positions in any sanctioned Russian security. 

 As of June 6, 2022, you cannot open new positions (long or short) in non-sanctioned Russian securities. However, you may sell or hold your positions in non-sanctioned Russian securities.  

Sanctioned Russian Securities

1.     If I hold sanctioned Russian securities, can I access my account?

Yes, you will have full access to your IBKR account.  However, you will not be able to trade or transfer any positions in any sanctioned Russian security.

2.     Can I trade or transfer my positions in sanctioned Russian securities to another broker?

No.  Positions in sanctioned Russian securities are frozen. You are not able to trade or transfer these positions until the sanctions are lifted or you receive a specific license from OFAC.

3.     Can I receive Dividends on Sanctioned Russian Securities

 No.  IBKR is not allocated the dividend from the custodian and is prohibited from processing dividend payments on sanctioned securities.

4.     How will Corporate Actions be processed on sanctioned Russian Securities?

IBKR will not perform processing on sanctioned Russian securities including Corporate Actions that would change the value of your position in the security (including conversions of securities positions into cash, such as via mandatory tender offer or cash merger or new rights or positions).Stock splits and other corporate actions that do not change the economic value of your position may be processed.

UK and Canadian Sanctioned Securities:

1.     What additional sanctions apply to U.K. and Canadians Persons?

The U.K. and Canada imposed their own sanctions on certain Russian issuers, on top of those issued by the U.S. and EU.  U.K. and Canadian persons (including IBUK and IB Canada customers, and citizens/residents of the U.K. or Canada) may be fully restricted from trading or transferring positions in Russian issuers sanctioned by these jurisdictions.  These issuers are listed or were previously listed on the Moscow Stock Exchange, the Vienna Stock Exchange, the Stuttgart Stock Exchange, and the Nasdaq Stock Market.  For the most recent list of issuers, please see:  Which Russian securities have been specifically sanctioned?

For IBUK, Citizens of the U.K. (including U.K Territory), and Any Person Located in the U.K. or a U.K. Territory:

Non-Sanctioned Russian Securities

1.       What are the restrictions on non-sanctioned Russian securities?

The U.S. sanctions prohibit U.S. financial institutions from facilitating the purchase of securities of any Russian company.  This means that you cannot open new positions in Russian securities, including their derivatives. 

2.       Do I have to sell my positions in non-sanctioned Russian issuers?

No.  You may hold your existing positions in non-sanctioned Russian securities or sell your positions, as you choose. Please keep in mind that your ability to close positions may be limited by exchange or local rules. For example, current restrictions by the Central Bank of Russia prevent IBKR clients from making any trades (opening or closing) on the Moscow Stock Exchange.

3.       Is there a deadline for selling non-sanctioned Russian securities?

No, there is no wind-down period to divest. You may sell your positions in non-sanctioned Russian securities at any time so long as the market for that security is open to IBKR for trading. For instance, IBKR does not currently have access to the Moscow Stock Exchange.

4.       Can I continue to purchase Russian securities or sovereign debt in the secondary market?

No, the prohibitions apply to any debt or equity security issued by a Russian entity, including sovereign debt.  You can sell your Russian securities or debt positions or hold them, but you cannot make new purchases. 

5.       Can I convert my ADRs and GDRs in non-sanctioned Russian securities?

IBKR is not supporting conversions of your ADRs and GDRs into RUB-based securities that deliver to your IBKR account.  We may, on a best-efforts basis, facilitate conversions in which the underlying shares are delivered to a non-IBKR account.  We discuss ADRs and GDRs in more detail below.

6.       Can I transfer my position in non-sanctioned Russian securities?

Yes, you can transfer these positions to another brokerage account in your name, assuming the receiving broker will accept the positions.

7.       Can I receive dividends on non-sanctioned Russian securities?

Due to changes made by the Russian Central Bank, IBKR is not facilitating the payment of dividends on any Russian securities. Clients should contact the issuer to receive their dividends.

 

8.       How will corporate actions relating to my non-sanctioned Russian securities be processed?

At this time, we note that many corporate actions on non-sanctioned Russian securities do not appear to be getting processed by our Custodian Bank.  To the extent our Custodian Bank processes the corporate action, IBKR will apply the corporate action to client accounts.  

  

 C.   Customers from Certain Regions in Ukraine

The Luhansk and Donetsk Regions

In February 2022, the U.S., U.K., and EU issued a series of sanctions against Russia related to its actions in Ukraine. The sanctions include restrictions for persons and entities in the Luhansk and Donetsk provinces, similar to the 2014 Crimean sanctions.

Account Restrictions

1. Why is my account restricted?

Your account lists an address that is located in the Luhansk or Donetsk region in Ukraine.  The U.S. government issued sanctions specifically focused on two regions of Ukraine, Luhansk and Donetsk.  These sanctions allowed a short wind-down period, which ended March 23, 2022.  IBKR, as a U.S. financial institution, is required to limit the transactions clients from those regions can conduct.

2. I no longer live in the Luhansk People’s Republic (“LNR”) or Donetsk People’s Republic (“DNR”).  I live outside of those areas. Why is my account restricted?

IBKR has placed restrictions based on its account records and the information available to it.  If you currently live outside of the LNR or DNR, please update your address on file and submit a current document to verify your address (such as a utility bill).  We will review the information you provide and consider whether restrictions can be lifted.

3. What are the restrictions?

For Individual/Joint Customers

As of March 23, 2022, clients with addresses in the LNR or DNR cannot make any trades, or transfer positions, unless the U.S. sanctions are lifted or authorization is granted by OFAC.   You cannot make deposits at this time but you may make a withdrawal to an account in your name for personal, non-commercial purposes.  We will require you to confirm this before the withdrawal.

For Org Customers

The sanctions do not allow organization or trust accounts to trade, transfer or withdraw funds now that the wind down period ended.  

4. What do I have to do to remove the restrictions?

If you have moved from the LNR or DNR but did not update your account information, please update your address on file and provide a current proof of address document demonstrating that you do not reside in the LNR or DNR.  We will review the information and let you know whether the restrictions can be removed.

Alternatively, you can contact the US Department of Treasury’s Office of Foreign Assets Control (OFAC) and apply for a specific license on OFAC’s website.  (OFAC License Application Page)

The Kherson and Zaporizhzhia Regions

For IBIE and IBCE Only:

In October 2022, the EU announced additional sanctions against Russia for its continued activity in Ukraine.  These sanctions include restrictions for persons and entities in the Kherson and Zaporizhzhia regions of Ukraine, similar to the 2014 Crimean sanctions and the restrictions imposed on the Luhansk and Donetsk oblasts in February 2022. As a result of the new EU sanctions, Interactive Brokers Ireland (“IBIE”) and Interactive Brokers Central Europe (“IBCE”) cannot do business with any person or entity located in the Kherson and Zaporizhzhia territories.  

 

 D.   Customers Who Bank Through Sanctioned Banks

 The U.S., U.K., and EU sanctioned a number of leading Russian banks, generally prohibiting transactions with these banks.

1.       What are the sanctions?

Under the sanctions, customers are not allowed to deposit from, or withdraw to, a sanctioned bank.  The sanctions included wind down periods that have ended.

2.       What banks are impacted by the sanctions?

The following Russian banks and their subsidiaries have been sanctioned by the U.S., U.K., and/or the EU, disconnected from the global banking network SWIFT, or both.  IBKR is therefore unable to accommodate deposits or withdrawals through these banks.

• Sberbank (disconnected from SWIFT)
• Alfa Bank
• VTB (disconnected from SWIFT)
• Bank Rossiya (disconnected from SWIFT)
• Otkritie (disconnected from SWIFT)
• Novikombank (disconnected from SWIFT)
• Promsvyazbank (disconnected from SWIFT)
• Sovcombank (disconnected from SWIFT)
• VEB (disconnected from SWIFT)
• Transkapitalbank
• Investtradebank
• Rosselkhozbank (disconnected from SWIFT)
• Moscow Credit Bank (disconnected from SWIFT)

The following banks are also subject to U.K. sanctions, which apply to all clients of Interactive Brokers (U.K.) Ltd. (IBUK):

• GazPromBank
• SMP Bank
• Ural Bank for Reconstruction and Development.

IBUK customers cannot currently deposit from, or withdraw to, any of these sanctioned banks.

3.       Do I have to close my IBKR account if I bank through one of the sanctioned banks?

These sanctions on banks do not require you to close your IBKR account.  IBKR just can’t process deposits or withdrawals involving a sanctioned bank.

4.       Can I add different banking instructions?

Yes, you are welcome to add new banking instructions for an account at a non-sanctioned bank. Please note that IBKR has long maintained restrictions on certain patterns of deposit and withdrawal activity, which will remain in effect.  For more information on these restrictions, click here.

 

E.   Restrictions Affecting Russian or Belarusian Nationals, Citizens, and/or Residents

Certain sanctions only impact Russian or Belarusian nationals, citizens, and/or residents. 

MOEX

1.       I am a Russian citizen. Will I be able to trade my non-sanctioned Russian stocks on MOEX?

IBKR is a foreign broker and is restricted by the Russian government from trading on the Moscow Stock Exchange (MOEX).  Therefore, you will not be able to trade on MOEX through your IBKR account.

 EU Securities Restrictions

1.       I am a Russian (or Belarusian) national or resident. Why can’t I trade on EU exchanges?

The EU imposed sanctions prohibiting the sale or transfer of euro-denominated securities issued after April 12, 2022 (including proceeds of corporate actions) to Russian or Belarusian nationals (defined as all citizens of these countries who do not live in the EU) or people or entities located in Russia or Belarus. 

In order to comply with these sanctions, IBKR has restricted Russian and Belarusian nationals or residents, and entities located in Russia or Belarus or owned by Russian or Belarusian nationals or residents, from opening new positions or increasing existing positions (long or short) in any financial instrument in European exchanges, any financial instrument denominated in an EU currency, traded on any exchange, and any financial instrument that would be custodied at an EU Central Securities Depository.

 

Market Data Restrictions

1.       I am a resident of Russia. Why can’t I see market data for NYSE and Nasdaq?

Due to Russia’s continued involvement in Ukraine, NYSE and Nasdaq have suspended the provision of market data services to individuals and entities located in Russia. IBKR does not know when NYSE and Nasdaq will resume these services.