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This content was produced in Russia where the law

restricts

coverage of Russian military operations in Ukraine

By Elena Fabrichnaya

MOSCOW, April 19 (Reuters) - The Russian broker

organising an asset swap scheme that could free up frozen funds

for Russian and foreign investors would consider unblocking

around $500 million worth of funds a good result, its head told

Reuters on Friday.

Moscow presents the plan as a way for both Russian and

foreign investors to free up assets that have been blocked by

Western sanctions and Russian counter-measures since the start

of the conflict in Ukraine more than two years ago.

Under the swap deal, foreign investors would have the

opportunity to use funds frozen in Russia to buy the assets of

Russian companies that have been immobilised in Europe - and

vice versa.

No specific targets have been set, but Alexey Sedushkin, CEO

of Investitsionnaya Palata (Investment Chamber), the broker

appointed by the finance ministry to run the scheme, told

Reuters he hoped that at least half of the broker's clients

would participate.

"If we talk about figures, these are our subjective,

approximate estimates, that potentially individuals could submit

for the redemption of securities in the range of 30-50 billion

roubles," Sedushkin said.

"I would say that a positive scenario is if we end up in the

range of 40-50 billion roubles ($430-$537 million)," he said.

Sedushkin said the scheme was a way for foreign investors to

effectively exchange currency risk for market risk, with Western

regulators needing to ultimately give approval before assets

could be transferred.

"In Russia, these securities will be free from capital

restrictions," Sedushkin said. "Most importantly, this is a

chance for foreigners to reduce their exposure to Russia, to

Russian assets, which is important to many."

Up to 50% of the broker's clients have already submitted

applications, Sedushkin estimated, expecting the picture to

become clearer by the May 8 deadline.

Demand from foreigners - tens of billions of roubles from

more than 20 foreign institutions, including U.S. funds and

banks - is outstripping offers from Russians at present,

Sedushkin said.

($1 = 93.0940 roubles)