Prohibits placing and circulation of shares abroad through depositary receipts
16 Apr 2022
On 16 April 2022, the Russian Federation adopted Federal Law No.114-FZ “On Amendments to the Federal Law “On Joint Stock Companies” and certain legislative acts of the Russian Federation”(Федеральный закон от 16.04.2022 № 114-ФЗ "О внесении изменений в Федеральный закон "Об акционерных обществах" и отдельные законодательные акты Российской Федерации"). Following the adoption of the law, it is prohibited to place and (or) organize the circulation of shares of Russian issuers outside the Russian Federation through depositary receipts. Russian issuers are obliged to take necessary actions aimed at terminating the existing agreements on their depositary receipts programs. Companies already listed abroad will have to delist unless they obtain an approval of the Government Commission on Control over Foreign Investments (FDI Commission). The amendments will come into force on 27 April 2022.
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Type:
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Entry and establishment (Ownership and control, Other)
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Treatment and operation (Company laws and corporate governance)
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Treatment and operation (Capital transfer and FOREX)
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Industry:
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Not industry specific
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Services (Financial and insurance activities)
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Sources:
