IB has traditionally been not only quite loyal to Russian customers, but offered very low rates and a wide range of access to foreign markets. However, since last year, after it was fined by the US Securities and Exchange Commission (SEC) and other regulatory authorities, IB has begun to restrict their work with clients from Russia.
The main requirement of IB is that the broker wants to “see” the end customers in order to not violate sanction laws. Russian brokers, in turn, cannot disclose them because the data must be stored inside of Russian territory. That's why such a requirement is contrary to Russian legislation.
At first, they asked all Russians to close all accounts that were opened through CFCs (controlled foreign corporations), now through brokerage companies. I believe that the time will soon come when IB will stop opening new accounts for Russians at all.
Evgeny Pundrovskiy, CFA, Director of Investment Department UFG Wealth Management