Russian media: Putin signs decree to delist Russian companies from foreign stock markets

  [Global Network Express] Russian Satellite News Agency just reported on the 16th that Russian President Vladimir Putin signed a law prohibiting the placement and circulation of Russian issuers' stock depositary receipts in foreign stock markets.

  Russian companies and banks trading abroad will have to go through a delisting process and exchange receipts for shares, the report said.

All decisions related to the termination of circulation of depositary receipts on foreign stock markets are made by the person in charge of the company and do not require approval by the board of directors or general meeting of shareholders.

Receipt holders can exchange them for shares traded on the Russian stock market.

  The report also stated that dividends will continue to be paid after the depositary receipts are converted, and the voting rights granted will be retained.

The law provides for the termination of the circulation of stock depositary receipts of Russian companies and banks abroad in order to relocate them to the Russian domestic stock market.

  Since the outbreak of the Russian-Ukrainian conflict on February 24, Western countries led by the United States have imposed a series of sanctions on Russia.

More and more Russian companies are facing sanctions from the West, or are restricted or even cut off from their economic and financial ties with the West.

Russian Minister of Economic Development Reshetnikov said on April 1 that the depositary receipts of some large Russian listed companies overseas will be returned to the Moscow financial market.

Earlier, some European and American stock exchanges announced that they would suspend the trading of depositary receipts of Russian-listed companies.