12 May 2022 15:50

Nornickel first to receive Russian authorities' permission to retain listing abroad, valid for one year

MOSCOW. May 12 (Interfax) - Norilsk Nickel MMC (Nornickel) has received permission from the Russian Government Commission on Monitoring Foreign Investment to retain its ADR program on the London Stock Exchange, the Arctic smelting and mining giant said in a statement.

Permission has been granted for one year from the date of the decision until April 28, 2023, according to the statement.

Several major issuers with foreign listings had reported earlier about sending their respective appeals to the government oversight commission, though Nornickel was the first one to disclose a positive decision from the Russian authorities. Indeed, Gazprom has even reported on receiving a negative decision from the oversight commission in response to its appeal.

Nornickel has announced that it welcomes the oversight commission's decision that "provides time to assess the existing opportunities, as well as to work out the necessary decisions aimed at maintaining investment attractiveness in the long term."

According to analysts at BCS, the commission's approval is a turning point. "This is a positive factor in the long term prospects for market sentiment and the interest of potential international investors," the analysts said.

Nornickel's appeal to the oversight commission was required owing to amendments to legislation that came into force on April 27, 2022. According to Russian federal law No. 114-FZ, Russian issuers had until May 5, inclusive, to complete the "necessary and sufficient" actions to terminate agreements on the placement of depositary receipts outside the Russian Federation. Companies wishing to maintain their respective depositary programs had the right to appeal to the Finance Ministry by May 5 with a corresponding request, providing a rationale for the need for such a decision.

Anticipating the date of the law entering into force, Nornickel said that it was considering various options for its ADR program, warning investors that there was no guarantee that the company's appeal would be approved once submitted.

About 20% of Nornickel's charter capital is from ADRs.