Russian steel giant NLMK Group has notified about the 16 April 2022 publication of Federal Law No 114-FZ On changes to Federal Law On Joint-Stock Companies and certain legislative acts of the Russian Federation. The Law obliges Russian issuers whose stocks are traded as depositary receipts at non-Russian stock exchanges to take action to terminate their depositary contracts within 5 days of the date when the corresponding provisions of the Law enter into force. The holders of Russian issuers’ depositary receipts that are registered as of the date when the corresponding provisions of the Law enter into force will have the right to convert their receipts into ordinary shares. Regular shares recorded in the securities accounts of depositary programs will not provide voting rights, and dividends on such shares will not be paid. The aforementioned provisions of the Law regarding depositary receipts enter into force 10 calendar days after the publication of the Law. Russian issuers of securities whose stocks are traded as depositary receipts at non-Russian stock exchanges have the right to submit a request justifying the necessity of continuing the circulation of securities outside Russia. The Request will be considered by the Government Commission on Monitoring Foreign Investment in the Russian Federation. Russian issuers are given 5 business days from the date the provisions of the Law regarding depositary receipts enter into force to file a Request with the Government Commission. NLMK Group plans to submit the Request to continue trading its depositary receipts on London Stock Exchange.
Russian steel giant NLMK Group has notified about the 16 April 2022 publication of Federal Law No 114-FZ On changes to Federal Law On Joint-Stock Companies and certain legislative acts of the Russian Federation. The Law obliges Russian issuers whose stocks are traded as depositary receipts at non-Russian stock exchanges to take action to terminate their depositary contracts within 5 days of the date when the corresponding provisions of the Law enter into force. The holders of Russian issuers’ depositary receipts that are registered as of the date when the corresponding provisions of the Law enter into force will have the right to convert their receipts into ordinary shares. Regular shares recorded in the securities accounts of depositary programs will not provide voting rights, and dividends on such shares will not be paid. The aforementioned provisions of the Law regarding depositary receipts enter into force 10 calendar days after the publication of the Law. Russian issuers of securities whose stocks are traded as depositary receipts at non-Russian stock exchanges have the right to submit a request justifying the necessity of continuing the circulation of securities outside Russia. The Request will be considered by the Government Commission on Monitoring Foreign Investment in the Russian Federation. Russian issuers are given 5 business days from the date the provisions of the Law regarding depositary receipts enter into force to file a Request with the Government Commission. NLMK Group plans to submit the Request to continue trading its depositary receipts on London Stock Exchange.
