September 28, 2022

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Russia will allow 15 firms to keep on being mentioned abroad – finance ministry

2 min read

A see displays nickel sheets at Kola Mining and Metallurgical Enterprise (Kola MMC), a subsidiary of Nornickel metals and mining business, in the town of Monchegorsk in Murmansk Location, Russia February 25, 2021. REUTERS/Evgenia Novozhenina

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May well 18 (Reuters) – Russia has offered 15 companies which includes metals huge Nornickel (GMKN.MM) and liquefied organic gasoline producer Novatek (NVTK.MM) approval to continue to be listed on international exchanges, the finance ministry said on Wednesday.

Russian President Vladimir Putin signed a bill in April demanding Russian companies to delist their depositary receipts to reduce the impact foreign countries could around them, other than if they have been granted permission to continue being mentioned.

The finance ministry explained that out of the 36 Russian corporations with depositary receipts, 19 experienced requested authorization and 15 were prosperous.

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So significantly, Nornickel, Novatek, Russia’s major gold producer, Polyus (PLZL.MM), metal producers NLMK (NLMK.MM), Severstal (CHMF.MM) and Mechel (MTLR.MM), as well as oil producer Tatneft (TATN.MM) have reported they have the inexperienced mild to stay stated.

Russian fuel firm Gazprom (GAZP.MM) has beforehand reported its ask for was turned down and it expects its depositary receipts to be delisted on May well 31.

It remains unclear which other firms unsuccessful to get acceptance adhering to a request.

Even with authorization to continue to be detailed overseas, trade in Russian securities has been stopped by some Western bourses.

The London Inventory Trade, for instance, halted buying and selling in the depositary receipts of main Russian companies it lists when their prices crashed following the start of Moscow’s “unique navy procedure” in Ukraine on Feb. 24.

Depositary receipts are certificates issued by a bank symbolizing shares in a foreign company traded on a neighborhood inventory trade. They permit buyers to trade in overseas shares in their possess geography and time zone.

Western countries have imposed rigorous sanctions on Russia due to the fact it sent troops into Ukraine and one finance ministry formal stated Russian corporations had been searching to change their overseas listings elsewhere.

“Most of individuals who system to continue on depository programmes intend to move them to other jurisdictions,” Ivan Chebeskov, head of the financial coverage section at the ministry, instructed a meeting on Wednesday.

“Every person understands that the marketplaces in which overseas financial commitment can be captivated are possible to change eastwards.”

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Reporting by Reuters Editing by David Clarke

Our Expectations: The Thomson Reuters Rely on Ideas.

https://www.reuters.com/markets/europe/russia-permits-15-providers-remain-shown-overseas-finance-ministry-2022-05-18/