1 Jun 2022 14:47

Permission to maintain DR programs granted to 15 companies, 9 of them indefinitely - MinFin

MOSCOW. June 1 (Interfax) - Of the 19 companies that applied to maintain their depositary receipt programs, 15 secured permission to do so, the Russian Finance Ministry said in materials on its website.

Such permissions were granted by a subcommittee of the Government Commission on Monitoring Foreign Investment. Effective from April 27, 114-FZ has banned placement of receipts on foreign stock exchanges and ordered the delist of existing ones, unless the government commission rules gives permission to maintain them.

"A positive decision on the continuation of the circulation of depositary receipts outside Russia was made on the applications of 15 issuers. With respect to the depositary programs of 9 issuers, a decision was made to continue the programs indefinitely with a recommendation to transfer the depositary programs to the jurisdictions of countries not included into the list of foreign states and territories which commit unfriendly acts against Russia, Russian legal entities and individuals", - the ministry's website said.

Four companies were denied the right to maintain circulation of depositary receipts outside Russia.

The names of these companies were not disclosed in the Finance Ministry report. Earlier, Gazprom , Magnit , MMK reported that the government commission had not approved their application to continue listing receipts. There has also been news of the termination of depository receipt programs at Aeroflot , Sberbank , VTB , Lukoil , Gazprom Neft , Rostelecom , NCSP and several others companies. Permission to extend depository programs indefinitely was issued to Mechel , NLMK , PhosAgro , Polyus , Severstal , among others. For example, Lenta received a one-year DR permit, while En+ has been issued one lasting through November 2024, and MTS received a permit for only two months.