Ukraine's NBU, Clearstream expand link to additional assets

MOSCOW. Feb 1 (Interfax) - The National Bank of Ukraine (NBU) reached an agreement with the Clearstream international central securities depository (ICSD) of Deutsche Borse Group on expanding the existing link, which currently services domestic government bonds, to additional asset classes.

Due to the expansion of the link, foreign investors will be able to undertake not only transactions with Ukrainian government securities, but also with other financial instruments of the post-crisis recovery, the Ukrainian media reported, citing a statement on the NBU website.

For this purpose, Clearstream with the assistance of the Ukrainian Finance Ministry will open a securities nominee account at the NBU.

As reported, in 2019, Clearstream entered the Ukrainian capital markets and launched a link with the depository of the NBU. However, Citi was then the correspondent bank and local operator of the Clearstream account at the NBU.

"As a provider of trusted, transparent and efficient infrastructure, we operate our link to Ukraine with the aim of enabling further international investment opportunities. This decision emphasises our commitment to the Ukrainian market and our excellent local partner," Head of Global Markets at Clearstream Jan Willems was quoted as saying in the statement.

For his part, NBU Governor Andrei Pyshny noted that the successful operation of the link between the NBU and Clearstream for nearly four years proves the interest of investors in the Ukrainian capital markets.

At a business forum on Ukraine's recovery on Tuesday in Luxembourg, where the Clearstream headquarters is located, representatives of the depository, which was one of the sponsors, highlighted their interest in rebuilding Ukraine, setting up and servicing new instruments, along with domestic government bonds.

They also said they hope that after April 1, when the ban on repatriation of funds from domestic government bonds by non-residents will be lifted, the activity of foreign investors in the Ukrainian market will increase.

Over the past week, the portfolio of domestic government bonds owned by non-residents, which slightly decreased in 2022, rose by almost UAH 4 billion due to the purchase of short securities with their maturity after April 1 for the repatriation of funds.

Clearstream, part of Deutsche Borse Group, is a provider of post-trade infrastructure on the financial markets. It is one of the world's largest settlement and custody firms for domestic and international securities. Clearstream provides access to 59 domestic securities markets and custody of assets worth 16 trillion euros, the NBU said.