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May possibly 18 (Reuters) – Russia has supplied 15 businesses like metals huge Nornickel (GMKN.MM) and liquefied organic gasoline producer Novatek (NVTK.MM) acceptance to remain stated on foreign exchanges, the finance ministry reported on Wednesday.
Russian President Vladimir Putin signed a monthly bill in April demanding Russian providers to delist their depositary receipts to minimize the affect foreign international locations could about them, except if they were being granted permission to continue to be detailed.
The finance ministry claimed that out of the 36 Russian corporations with depositary receipts, 19 experienced asked for authorization and 15 ended up thriving.
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So much, Nornickel, Novatek, Russia’s premier gold producer, Polyus (PLZL.MM), steel producers NLMK (NLMK.MM), Severstal (CHMF.MM) and Mechel (MTLR.MM), as very well as oil producer Tatneft (TATN.MM) have mentioned they have the inexperienced gentle to continue being stated.
Russian gasoline company Gazprom (GAZP.MM) has earlier stated its request was rejected and it expects its depositary receipts to be delisted on May well 31.
It remains unclear which other businesses failed to get approval subsequent a request.
Even with authorization to keep on being stated abroad, trade in Russian securities has been stopped by some Western bourses.
The London Inventory Trade, for case in point, halted investing in the depositary receipts of big Russian corporations it lists when their price ranges crashed subsequent the launch of Moscow’s “particular military services procedure” in Ukraine on Feb. 24.
Depositary receipts are certificates issued by a financial institution representing shares in a foreign firm traded on a local inventory exchange. They make it possible for investors to trade in overseas shares in their personal geography and time zone.
Western nations have imposed rigorous sanctions on Russia because it sent troops into Ukraine and one particular finance ministry official reported Russian firms were seeking to shift their overseas listings in other places.
“Most of those who plan to carry on depository programmes intend to transfer them to other jurisdictions,” Ivan Chebeskov, head of the money policy division at the ministry, told a convention on Wednesday.
“Absolutely everyone understands that the marketplaces in which overseas investment decision can be attracted are possible to shift eastwards.”
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Reporting by Reuters Enhancing by David Clarke
Our Criteria: The Thomson Reuters Trust Concepts.