Russians may soon be allowed to trade shares of foreign companies on their domestic market after the financial regulator sent a draft law to the Russian Parliament. Internet sites such as US-based E-Trade currently allow Russians to buy and sell foreign securities provided they have a US bank account and are willing to pay capital gains tax both in Russia and in the US. But the new legislation will allow foreign securities to trade on the Russian market. Aleksandr Kotchoubey, managing director of Renaissance Capital said: "It's positive because the market suffers from high inflation which finally teaches the investors to diversify their portfolios. And after many years of strong gains in the Russian market it's very important they have started thinking of diversification." If passed, the law would bring Russia a step closer to becoming a regional financial centre. But traders say securities from countries like Ukraine and Kazakhstan - which could be in high demand - are likely to be excluded. These countries would be excluded as they are not members of the Financial Action Task Force, an international body that combats money laundering.