Clearstream resumes conversion of Russian depositary receipts

MOSCOW. Oct 7 (Interfax) - Clearstream Banking will resume processing instructions for conversion of depositary receipts (DR) on Russia shares for those DR programs where DR agents are supporting the conversion and have their books open for cancellation, Clearstream said in a statement.

However, settlement at Clearstream Banking for Russian DRs with underlying Russian shares remains closed due to the possibility to convert DR holdings into underlying Russian shares through the forced conversion procedure introduced by Russian Federal Law No. 319-FZ, the statement said.

Clearstream also recalled that Russia's National Settlement Depository (NSD), a division of the Moscow Exchange group, recently extended a decision to not charge fees the services of transferring Russian shares to or from custody accounts of DR agents until December 31, 2022. The waiver of the fees allows European settlement and clearing systems to conduct transactions involving the NSD, which has been subject to European Union sanctions since early June that bar any transactions from which the NSD benefits financially.

Citibank, the agent for the DR programs of a number of Russian companies, announced this week that it was opening books for converting the DRs of En+ Group, PhosAgro , Tatneft , Rostelecom and Lukoil .