Russia: Settlement of Russian securities
Further to Announcements A22018 and A22021, Clearstream Banking1
reminds customers that settlement on securities held on Clearstream Banking depository 3R is closed until further notice.
Prescription No. 018-34-3/1202 issued by the Central Bank of the Russian Federation on 28 February 2022 suspends the execution of all operations involving the transfer of securities issued by Russian entities from accounts opened by foreign legal entities and individuals, including Foreign Nominee Holder account holders such as Clearstream Banking, to foreign legal entities and individuals. The National Securities Depository has, in consequence, placed the securities deposits of Foreign Nominee Holders onto blocked accounts in its books.
Clearstream Banking considers that book entry transfers between participants outside Russia could have no assurance of finality. Consequently, Clearstream Banking considers the closure of settlement in Russian securities held with the National Securities Depository to be an action essential to the protection of customer assets.
Clearstream Banking understands that NSD is required to suspend payments on securities issued by Russian entities to foreign legal entities and individuals. NSD will not credit such proceeds to Clearstream Banking’s account until further notice.
Clearstream Banking confirms that its RUB cash account with the NSD is unaffected by the Prescription and that RUB corporate action payments on securities issued outside Russia can continue to be collected to the extent permitted by sanctions and other applicable regulations.
Further information
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.