Clearstream halts Russian share conversions after new EU sanctions
LONDON, June 10 (Reuters) - European clearing giant Clearstream has halted all requests to convert Russian firms' 'depository receipts' into Moscow-listed shares following the European Union's latest sanctions.
Depositary receipts (DRs) are certificates representing shares in a company foreign to where they are traded, which allow investors to trade in overseas stocks.
Russian President Vladimir Putin signed a bill in April though requiring all but 15 Russian firms to delist their depositary receipts to reduce potential foreign influence.
Investors had told Reuters on Thursday that they had been facing difficulties in converting their DRs into Moscow-listed shares after the EU targeted Russia's National Settlement Depository (NSD) in new sanctions last week.
On Friday, Clearstream, which is part of Deutsche Boerse, confirmed https://www.clearstream.com/clearstream-en/products-and-services/settlement/a22079-3114440 it had put DR conversions "on hold" and was "in consultation with the competent authorities to get clarity on the impact of the new EU sanctions".
It said it will mean customers would not see any instructions, either new or already pending, related to Russian depository receipt conversions processed for the time being and that no status updates would be given.
It adds to already challenging conditions for Russian companies, including lender Sberbank and No. 2 bank VTB which have been cut off from international banking systems and seen have their depositary receipts frozen in financial centres such as London and New York. (Reporting by Marc Jones; editing by Jason Neely)
