Kazakhstan Stock Exchange to segregate accounts of Russian, Belarusian citizens from other accounts

ALMATY. April 26 (Interfax) - The Kazakhstan Stock Exchange (KASE) has circulated information on the need to segregate accounts of citizens of Russian, Belarusian citizens at Central Securities Depository, the investment bank Halyk Finance said.

Halyk Finance informed of a letter from the KASE regarding segregation of accounts of Russian, Belarusian citizens at Central Securities Depository, namely securities accounts denominated in a currency other than the tenge and instruments settled through the international settlement depositories Euroclear and Clearstream.

It is noted that tentatively the segregation will begin after May 1, 2023. Thereafter, according to Halyk Finance, there may be delays in settlement of deals on the KASE, which "may lead to default situations and penalties on the part of the exchange."

"To minimize the risks of default on transactions on the KASE, Halyk Finance plans to shut access for Russian, Belarusian citizens to the KASE Global sector and other instruments on the KASE denominated in foreign currencies, settlement for which is held in the international settlement depositories Euroclear and Clearstream starting from April 27, 2023," the company said.

Deputy Chair of Kazakhstan's Agency for Regulation and Development of the Financial Market Maria Khadzhiyeva told a Wednesday briefing that the KASE introduced this order due to demands by international accounting organizations.