Russia MOEX Investing Guide 2026 — Stocks, IIS & Dividends

Bonds Market

Russia's bond market offers some of the highest yields in the world among major economies, driven by the Central Bank's key rate which has been elevated (16-20% range) during the 2024-2026 period to combat inflation. There are three main categories of bonds available to retail investors on MOEX:

OFZ (ОФЗ — Облигации федерального займа): These are federal government bonds issued by the Ministry of Finance (Минфин РФ). They are considered the risk-free benchmark in Russia, backed by the full faith and credit of the Russian Federation. OFZ bonds come in several varieties: (a) OFZ-PD (with fixed coupon) — most common, pays a fixed coupon semi-annually; (b) OFZ-PK (with variable coupon) — coupon linked to the RUONIA rate (the Russian interbank rate) plus a spread; (c) OFZ-IN (with indexed principal) — principal is indexed to consumer inflation (CPI), providing inflation protection; and (d) OFZ-AD (with amortisation) — principal repaid in instalments. Yields on OFZ in 2026 are approximately 14-17% depending on maturity and type. Short-term OFZ (1-3 years) yield close to the key rate, while the yield curve is moderately upward sloping. OFZ bonds are traded in high volumes and provide excellent liquidity. Coupon income is taxed at 13-15% NDFL for OFZ-PD and OFZ-PK, but OFZ-IN indexation is tax-exempt on the inflation component in certain conditions. Minimum lot size is typically 1,000 RUB face value.

Corporate bonds (корпоративные облигации): Russian companies issue bonds through MOEX's bond market, which has grown significantly since 2022 as companies lost access to international debt markets. Corporate bonds offer a yield premium over OFZ of approximately 100-400 basis points depending on the credit rating. Major corporate bond issuers include Sberbank, VTB, Gazprom, Rosneft, Russian Railways (РЖД), Rosseti, and many regional banks, developers, and industrial companies. Bonds are rated by ACRA (АКРА) or Expert RA (Эксперт РА), the two leading Russian rating agencies. The typical coupon frequency is semi-annual or quarterly. Face value is usually 1,000 RUB. The corporate bond market has grown to over 20 trillion RUB in outstanding volume. Investors should be aware that credit risk has increased in the sanctions environment — several companies have faced financial difficulties, and credit ratings should be carefully reviewed.

Sub-federal and municipal bonds: Bonds issued by Russian regions (субъекты РФ) and municipalities. These are generally considered low-risk and offer yields slightly above OFZ but below corporate bonds. Coupon income on sub-federal and municipal bonds is tax-exempt (освобождается от налога), making them particularly attractive for taxable accounts. Notable issuers include Moscow (Москва), Moscow Oblast, St Petersburg, Tatarstan, Krasnodar Krai, and others. The market is smaller and less liquid than OFZ but offers good opportunities for tax-aware investors.

Retail bond market: Since 2022, MOEX has developed a retail bond segment with lower face values (as low as 1,000 RUB compared to the standard 100,000 RUB or 1,000,000 RUB for institutional bonds). This has opened the bond market to small retail investors. Most brokers offer bond screeners that allow filtering by yield, duration, credit rating, and issuer type. During the high-rate environment of 2024-2026, many investors have shifted from equities to bonds, creating strong demand. Bond ETFs (БПИФы) such as "Russian Government Bonds" and "Corporate Bonds" ETFs are also available and provide diversified exposure with low minimum investments.

Sanctions Impact

International sanctions have fundamentally reshaped the Russian investment landscape since February 2022. The impact on MOEX and investors has been profound and multifaceted. Understanding the current sanctions environment is critical for anyone investing in Russian securities.

MOEX sanctions (2024): In June 2024, the United States imposed sanctions directly on the Moscow Exchange (MOEX) and its clearing house (National Clearing Centre, НКЦ) and depositary (National Settlement Depository, НСД). The immediate effect was the suspension of trading in US dollars and Euros on MOEX. All FX trading pairs involving USD and EUR were halted. The MOEX USD/RUB and EUR/RUB benchmarks were discontinued. Trading in USD- and EUR-denominated securities (such as certain corporate Eurobonds listed on MOEX) was also suspended. Trading in Chinese yuan (CNY), Hong Kong dollar (HKD), Indian rupee (INR), UAE dirham (AED), and other "friendly" currency pairs continued normally. The suspension created significant challenges for retail investors holding USD-denominated instruments and for companies that had issued Eurobonds listed on MOEX. The Central Bank of Russia and MOEX have since worked on transitioning all trading to CNY, RUB, and other non-sanctioned currencies.

Transition to CNY and other currencies: Following the USD/EUR suspension, the Chinese yuan (CNY/RUB) has become the most traded currency pair on MOEX, accounting for over 50% of FX turnover in 2025-2026. Many Russian companies have redenominated their bond issues from USD/EUR to CNY. The Moscow Exchange has also introduced new indices and trading products denominated in CNY. Brokers have migrated client portfolios from USD positions to equivalent CNY or RUB positions. The yuan has effectively become the "reserve currency" for Russian capital markets. Other actively traded currencies include the Hong Kong dollar (HKD), UAE dirham (AED), and Belarusian rouble (BYN). Investors should expect continued currency risks related to the CNY/RUB exchange rate, which is influenced by both oil prices and geopolitical factors.

Frozen foreign assets: One of the most painful consequences of sanctions was the freezing of foreign-held Russian securities. In 2022, the National Settlement Depository (NSD) was cut off from Euroclear and Clearstream (the international central securities depositories in Belgium and Luxembourg). As a result, Russian stocks and bonds that were held through foreign depositories became illiquid and untradeable for the approximately 5 million Russian retail investors who held them via SPOFI (foreign nominee accounts) or through Russian brokers. These securities are colloquially referred to as "замороженные активы" (frozen assets). The Russian government introduced a mechanism allowing the exchange of frozen assets through a process managed by the Ministry of Finance and private investment funds (the "обмен замороженными активами"). As of 2026, limited exchanges have occurred — investors with frozen assets under 100,000 RUB have been able to sell them to designated buyers, but larger holdings remain blocked. Investors should treat any securities held through foreign depositories as illiquid and at high risk of total loss unless specifically exempted.

Restricted stocks list: Many Russian companies are under direct sectoral or blocking sanctions by the US (OFAC/SDNs), EU, UK, and allied countries. Sanctioned companies include: (a) Sberbank — under US CAPTA and EU sanctions, (b) VTB Bank — under full blocking sanctions, (c) Gazprom — under EU and UK sanctions (though not fully blocked by the US), (d) Rosneft — under EU, UK, and US sanctions, (e) Alrosa — under US and EU sanctions, (f) Sovcombank, Novikombank, and other banks. For Russian-resident investors, these sanctions do not prevent trading on MOEX — Russian brokers continue to offer trading in all MOEX-listed stocks, including sanctioned companies. However, foreign investors (including Russian citizens living abroad or non-residents) may face restrictions depending on where they reside and which broker they use. Non-residents from "unfriendly" countries are generally prohibited from trading on MOEX, while residents of "friendly" countries (China, India, UAE, Turkey, etc.) may be able to trade through specific licensed brokers. Before investing, consult the most recent OFAC and EU sanctions lists and check with your broker whether trading in a specific security is permitted.

Practical implications for retail investors: (a) Diversify your currency exposure — do not hold all assets in RUB. Consider CNY-denominated bonds or ETFs. (b) Use a Russian broker licensed by the Central Bank of Russia and ensure your assets are held in a segregated account. (c) Be prepared for continued volatility — the Russian market has experienced multiple sharp drawdowns and rapid recoveries since 2022. (d) Dividend payments may be disrupted — some companies suspended dividends in 2022-2023, though most have resumed. (e) Keep meticulous records for tax purposes, especially if you have multiple brokers or trade in multiple currencies. (f) Monitor the sanctions lists quarterly, as new designations can affect your holdings.

FAQs

Can foreigners invest on MOEX?

Foreigners from "friendly" countries (China, India, UAE, Turkey, Saudi Arabia, Brazil, Kazakhstan, Belarus, Armenia, Uzbekistan, Vietnam, and others not on Russia's "unfriendly" list) can generally open brokerage accounts and invest on MOEX. Residents of "unfriendly" countries (EU, UK, US, Canada, Australia, Japan, Switzerland, South Korea, etc.) face significant restrictions. Most Russian brokers will not open accounts for residents of unfriendly countries due to sanctions compliance risks. However, some brokers in friendly jurisdictions (Kazakhstan, Armenia, UAE) may offer access. Foreigners who already have accounts may face restrictions on withdrawals or trading in certain securities. It is advisable to consult a Russian broker before attempting to open an account.

What is the minimum investment to start trading on MOEX?

The minimum is very low. Most brokers allow you to open an account with zero initial deposit. The minimum investment to buy a single share varies: Sberbank costs around 300 RUB, Gazprom around 160 RUB, and many stocks are priced below 500 RUB. For bonds, the minimum face value is typically 1,000 RUB. You can start investing with as little as 1,000-5,000 RUB ($10-55) through most mobile brokers. The minimum for an IIS account is also flexible — you can open an IIS with zero balance and fund it gradually, but to claim the Type A deduction you need to contribute at least 1 RUB during the tax year.

How are dividends paid on MOEX?

Dividends on Russian stocks are paid through the depositary system. The company declares a dividend in RUB per share, sets a record date (дата закрытия реестра), and pays through the National Settlement Depository (NSD). Your broker credits the dividend (net of 13-15% tax) to your brokerage account. Dividends are typically paid within 10-30 days after the record date. Most Russian stocks pay dividends semi-annually or annually. The dividend yield is quoted on a gross basis (before tax). To receive a dividend, you must be registered as a shareholder on the record date, which is set approximately 2-3 weeks after the ex-dividend date (дата отсечки). Russian stocks generally follow a T+2 settlement — you must buy the stock at least 2 business days before the record date to receive the dividend.

Is MOEX safe for retail investors?

MOEX itself is a well-regulated exchange supervised by the Central Bank of Russia. The exchange has robust technical infrastructure and a proven clearing and settlement system (through NCC/НКЦ). However, the geopolitical and sanctions environment creates significant risks: (a) assets can be frozen if depositories are sanctioned, (b) currency controls may restrict repatriation of funds for non-residents, (c) the rouble is volatile and subject to sharp depreciation, (d) companies may suspend dividends, (e) liquidity can dry up during crises. The Russian government has also introduced capital controls and mandatory FX sale requirements for exporters. For Russian residents, MOEX is the primary and safest venue for domestic securities investment, and the Central Bank provides depositary insurance up to 1.4 million RUB for cash held in brokerage accounts (though not for securities themselves — securities are owned by you and held in the depositary). For foreign investors, the risks are significantly higher, and investing through MOEX should only be considered as part of a diversified portfolio with a clear understanding of the sanctions risks. It is essential to use a reputable, Central Bank-licensed broker and ensure your assets are held in a separate client account (отдельный счёт).

Can I hold foreign stocks on MOEX?

Before 2022, MOEX listed many foreign stocks and DRs (e.g., Apple, Microsoft, Tesla, Alibaba) through the "Foreign Securities" section. Since the sanctions, most foreign securities have been delisted from MOEX or suspended from trading. As of 2026, foreign stocks from unfriendly countries are not available on MOEX. Some stocks from friendly countries (e.g., Chinese companies listed in Hong Kong) may be available through certain brokers as over-the-counter products, but the selection is limited. For foreign stock exposure, Russian investors typically use Russian brokers that offer access to the Hong Kong Stock Exchange (HKEX), the Astana International Exchange (AIX), or the Armenian Securities Exchange (AMX). Some brokers also offer derivative products (such as futures and options on foreign indices).

What happens to my IIS if I leave Russia?

If you leave Russia and become a non-resident for tax purposes (spending less than 183 days in Russia per year), your IIS remains valid — you can continue to hold it and trade within it. However, you lose the right to contribute new funds that qualify for the Type A tax deduction (the deduction is only available to tax residents). If you have a Type B IIS and become a non-resident, the tax exemption on capital gains upon withdrawal should still apply if the 3-year holding period is met, though this area of law has grey zones and you should consult a tax advisor. If you close your IIS while a non-resident, the broker will withhold NDFL at 30% rather than 13-15% (non-residents pay a flat 30% on most Russian-source income unless a treaty provides otherwise). It may be advisable to close the IIS before departing or wait until you have completed the 3-year holding period. Consider converting your IIS into a standard brokerage account if you no longer qualify for the tax benefits.