MOSCOW, April 9 - RAPSI. The Finance Ministry has drafted a bill limiting the share of foreign investments in the charter capital of Russian banks to 50%, Vedomosti reported on Tuesday.

The law on banking states that the cumulative foreign capital quota in the Russian banking sector is determined by a government proposal previously agreed upon with the Bank of Russia.

An amendment to the law stipulates that the Bank of Russia should update the quota annually as of Jan. 1.

The recalculation will not take into account investments from non-resident firms controlled by Russian entities or investments from Russian subsidiaries of foreign banks operating in the country, investments made before Jan. 1, 2007, investments made in banks privatized after Aug. 22, 2012, in which more than 50% of the stock is held by Russia or a Russian region, the Bank of Russia, or a state corporation, and investments exceeding 51% of the bank's charter capital made after Jan. 1, 2007 that have been under the investor's ownership for at least 12 years.

Once the quota is reached, the Bank of Russia can stop the registration and the licensing of banks with foreign interest.

The bill also covers cases where the Bank of Russia can restrict the operation of banks with foreign capital if approved by the government.