Russia passes law to delist securities from foreign stock exchanges

0

Russia’s State Duma has passed a law to delist certificates of deposit that some large Russian companies, including Aeroflot (SU, Moscow Sheremetyevo), trade on exchanges abroad, RBK Novosti reported.

The new bill, passed on April 6, affects companies such as the national airline, Gazprom, Lukoil, Norilsk Nickel, Sberbank and the owner of UTair (UT, Khanty-Mansiysk), Surgutneftegaz, which previously considered registrations abroad as prestigious. RBK estimates that there are 27 such companies.

Since the invasion of Ukraine on February 24, however, stock exchanges in Western countries, including the London Stock Exchange, have halted trading in Russian securities.

Under the new law, which the lower house of parliament passed at third reading, these companies must take steps to deregister their certificates of deposit – securities traded on stock exchanges that facilitate the purchase of shares of foreign companies – and convert into shares traded in Russia.

Initially, the bill concerned the abolition of mandatory audits for certain joint-stock companies, but was later significantly revised to introduce, among other things, a ban on the circulation of new and existing certificates of deposit on the foreign exchange markets.

The bill must now be approved by the upper house and then signed by President Vladimir Putin before becoming law.

Share.

About Author

Comments are closed.