Any transaction entailing payout to Russia's NSD is subject to EU sanctions - regulator's clarification

MOSCOW. June 15 (Interfax) - Any transaction that directly or indirectly entails obligations to Russia's National Settlement Depository (NSD) is subject to European Union sanctions and cannot be completed, Clearstream said, citing a clarification from the Directorate General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA) of the European Union.

Consequently, "any trading activity in Russian securities and the conversion of depositary receipts is prohibited," Clearstream added. The settlement and clearing system supplemented last Friday's statement with the clarifications from DG FISMA, when it had announced the suspension of converting depositary receipts of Russian issuers into shares in connection with the inclusion of the NSD in the list of EU blocking sanctions on June 3.

Clearstream is continuing to consult with regulators in order to clarify further the impact of the new EU sanctions package on the NSD, on converting depositary receipts, and on related system services, according to the statement.