Econ Ministry proposes delisting of Russian companies' securities on international exchanges

MOSCOW. March 29 (Interfax) - The Economic Development Ministry has proposed delisting the depositary receipts for securities of Russian companies from foreign exchanges with subsequent conversion into Russian securities, a source familiar with the relevant draft law prepared by the ministry told Interfax. The Economic Development Ministry told Interfax that the "mechanism is being studied" but did not answer questions about the details of the procedure.

The initiative appeared shortly after the collapse of the value of depositary receipts of the largest Russian issuers on the London Stock Exchange (LSE) amid news of sanctions against Russia after which the LSE on March 3 stopped trading in the securities of 27 Russian companies. As of March 2, the value of receipts Sberbank fell to 1 cent, while Gazprom receipts fell 89%, Lukoil was down 97.2%, Nornickel was up 37%, Rosneft was down 70.4%, Novatek was up 91%, etc.