Putin signs decree to delist Russian companies from foreign stock markets

Putin signs decree to delist Russian companies from foreign stock markets

Putin signs decree to delist Russian companies from foreign stock markets


On the 16th local time, in response to Western sanctions, Russian President Vladimir Putin signed a decree stipulating the delisting of depositary receipts of Russian companies in foreign stock exchanges.


Depository receipts are transferable certificates that are circulated in a country's securities market and represent marketable securities of foreign companies. The decree stipulates that Russian companies must terminate the placement and circulation of depositary receipts in foreign stock markets and convert depositary receipts in foreign stock markets into shares in Russian stock exchanges. Investors can choose to exchange their holdings of foreign stock market depositary receipts of Russian companies into stocks in the Russian stock market, and the converted stocks will continue to pay dividends. According to a report by the TASS news agency on the 16th, many Russian companies, including Gazprom, Aeroflot, Sberbank, etc., have used depositary receipts to finance in foreign securities markets.


Earlier, some European and American stock exchanges announced that they would suspend the trading of depositary receipts of Russian-listed companies. Sergey Gavrilov, chairman of the Russian State Duma Land and Property Committee, said that the implementation of the new decree will increase the volume of domestic securities transactions in Russia, form a single pricing mechanism, and exclude the use of depositary receipts as a means of conducting transactions in Russia. Tools of economic warfare.


In addition, Russian President Vladimir Putin also signed a decree on the same day, stipulating that Russia will settle in rubles in the purchase of infrastructure equipment and services. On the same day, the Central Bank of Russia said it would not restrict Russian residents from depositing ruble funds in foreign bank accounts. Residents also have the right to convert rubles in foreign bank accounts into foreign currency and deposit them in foreign bank accounts or transfer them to other foreign bank accounts.


Since the outbreak of the Russian-Ukrainian conflict, Western countries have imposed economic and financial sanctions on Russia, including prohibiting Russia from using the payment system of the Society for Worldwide Interbank Financial Telecommunication, freezing the assets of Russian banks in Europe and the United States, etc., in an attempt to isolate Russia from the international financial system. Russia has opened its own financial information transmission system and requires Western companies to settle their transactions with Russia in rubles.

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