21 Nov 2022 14:33

OFAC allows purchase of VEON securities issued before June 6

MOSCOW. Nov 21 (Interfax) - The acquisition or receipt of the securities of telecommunications holding company VEON Ltd. issued before June 6, 2022 has been removed from the ban on new investments in Russia by U.S. persons.

OFAC, the U.S. Treasury Department's sanctions enforcement entity, published a license to that effect on Friday. The document does not refer to a specific sanctions list (VEON is not subject to restrictions), but to U.S. President Joe Biden's April 6 executive order, which banned new investments in Russia in principle.

This concerns both stocks and debt instruments. The license is not limited to a specific term.

VEON's largest shareholder is LetterOne, founded by Mikhail Fridman and his Alfa Group partners, with a 47.9% stake. The free float is 43.8%, and another 8.3% of the group is managed by a Dutch stichting trust.

VEON is listed on the Nasdaq and Euronext. The company is in danger of losing its listing on its main platform in New York due to non-compliance with the minimum price requirement. Under exchange rules, a company violates listing rules if the value of its securities does not exceed $1 for 30 business days. VEON's share price has fallen below $1 since February 24 and has not reached the required minimum since then.