Russian authorities’ hopes of attracting Western capital to the domestic stock market have so far failed to materialize, as investors from “unfriendly” countries have shown little interest in new government-backed accounts designed to protect their funds from freezing.

President Vladimir Putin in July signed a decree allowing non-residents to place money in a new type of account, known as “In” accounts, and invest in Russian securities, deposits and derivatives with guarantees that the funds would not be frozen. The Central Bank developed the accounts specifically for new foreign inflows.

“So far, we have not received any applications,” Central Bank Deputy Governor Filipp Gabuniya said Thursday.

The accounts are open to residents of all countries, both “friendly” and “unfriendly,” and are intended to attract new capital while existing foreign assets remain blocked in so-called “C” accounts.

These frozen accounts, containing proceeds, interest and dividends from Russian assets, cannot be converted to foreign currency or withdrawn without government approval.

Estimates by the Gaidar Institute put foreign holdings in Russian stocks and bonds at $192 billion, while the total value of frozen C accounts at the start of 2024 exceeded 1 trillion rubles ($11.9 billion), though the Central Bank has pegged the total amount needed to repurchase frozen assets at nearly 6 trillion rubles ($71.4 billion).