Putin signed a decree to remove Russian stocks from foreign exchanges

Central Bank of Russia in Moscow, Russia – Photo: REUTERS

This information was revealed by international media on April 19. Specifically, on April 16, President Putin signed a decree requiring Russian companies to remove their depository certificates from international exchanges in order to reduce foreigners’ control over companies. this company.

Depository securities are securities traded at domestic stock exchanges, denominated in local currency and representing shares of foreign companies.

This means that Russian billionaires who own foreign-listed companies will not be able to collect foreign currency dividends from custody certificates.

According to Reuters news agency, the Central Bank of Russia has announced the deadline for companies to come before May 5. The decree does not affect Russian companies that have issued initial public offerings (IPOs) on foreign exchanges such as Yandex or TCS Group.

Many large Russian companies have listed abroad. However, since Moscow launched a special military operation in Ukraine on February 24, Western exchanges have stopped trading Russian stocks.

On April 19, Hydropower group EN+ and Tatneft Energy became the first Russian companies to begin the process of removing their depository certificates from foreign exchanges.

According to Insiderthe aforementioned decree of the Russian president is the latest blow to Russian billionaires, who have been sanctioned by the West over Ukraine.

In April, newspaper Kommersant (Russia) quoted a Russian tycoon as saying that shareholders who have trusted Russia and invested in the Russian market for many years have nothing to do with politics, but are at risk of losing ownership of assets because of sanctions. Western sanctions as well as the adjustments of the Moscow government over the past time.