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A Russian state flag flies over the Central Bank headquarters in Moscow, Russia, August 15, 2023. International sanctions against Moscow over its invasion of Ukraine have blocked many Russian investors' access to securities held in jurisdictions outside the country, while Russian countermeasures have frozen Western funds within. "Interested foreign investors would be given the opportunity to buy 'blocked' foreign securities from Russian investors in exchange for funds held in type-C accounts," the central bank said. "The participation of investors (both Russian and foreign) in this process will be voluntary." Finance Minister Anton Siluanov on Tuesday asked President Vladimir Putin to support the plans, starting with the unblocking of about 100 billion roubles ($1.06 billion) in frozen funds belonging to retail investors.

Persons: Shamil Zhumatov, Clearstream, Anton Siluanov, Vladimir Putin, Dmitry Polevoy, Alexander Marrow, Devika Organizations: Central Bank, Bank of, REUTERS, Wednesday, Moscow, Thomson Locations: Russian, Moscow, Russia, Bank of Russia, Ukraine, Europe, Locko

☆ Russian asset manager files $2 billion Euroclear lawsuit in Moscow
▼ + stars: | 2023-07-12 | by ( ) www.reuters.com time to read: +2 min

MOSCOW, July 12 (Reuters) - One of Russia's oldest asset managers, First AM, has filed a claim for 184.8 billion roubles ($2.04 billion) with the Moscow Arbitration Court against Euroclear Bank, court documents showed, trying to protect investors whose assets were frozen. Sanctions on Russia's National Settlement Depository (NSD), as well as other Western measures aimed at restricting Russia's access to global financial infrastructure, have blocked many Russian investors' access to securities held in jurisdictions outside Russia. First AM, formerly known as Sber Asset Management, had 1.44 trillion roubles in assets under management as of September 2022. In 2022, it blocked Russian investors' operations on assets which were accounted for in the NSD account." Late last year, First AM applied to European authorities to unblock its assets at Euroclear and Clearstream.

Persons: Euroclear, Elena Fabrichnaya, Alexander Marrow, Sharon Singleton Organizations: Court, Euroclear Bank, Settlement Depository, Asset Management, Reuters, NSD, European Union, Thomson Locations: MOSCOW, Moscow, Russia, European, Belgium, Kremlin, Euroclear, Luxembourg

☆ Clearstream suspends processing of new Russian share conversions after EU sanctions
▼ + stars: | 2023-06-29 | by ( ) www.reuters.com time to read: +2 min

June 29 (Reuters) - European clearing giant Clearstream has suspended processing new client instructions to convert or cancel their American and Global Depository Receipt holdings in Russian companies after the latest round of European Union sanctions against Moscow. Investors globally are facing challenges in recovering stranded Russian investments in a saga that is spilling over to implicate Western depositories. Deutsche Bank (DBKGn.DE) has told clients it can no longer guarantee full access to Russian stocks that belong to them. Clearstream previously halted DR conversions in June 2022, only to resume processing in October. "The new rules quite strictly limit the conditions for the conversion of Russian securities for residents and citizens of the European Union," Grzegorz Drozdz, market analyst at investment company Conotoxia said.

Persons: Western, Clearstream, Grzegorz Drozdz, Conotoxia, Alexander Marrow, Sinead Cruise, Emelia Sithole Organizations: Global, Union, Moscow, Deutsche Bank, Deutsche, EU, Clearstream Banking, European Union, Thomson Locations: Russia, Europe

The shares have been held in Russia by a different depositary bank. DRs are certificates issued by a bank representing shares in a foreign company traded on a local stock exchange. Swapping DRs for shares in the Russian company is a first step towards an effort to recover their money. Deutsche Bank is now allowing investors to swap DRs for shares as part of its plans to exit all Russia business, one source said. JPMorgan & Chase (JPM.N), Citigroup (C.N) and BNY Mellon (BK.N) act as depositary banks for most other Russian depositary receipt programs, according to Clearstream.

Persons: Mechel, underscoring, Irina Tsukerman, Grigory Marinichev, Morgan Lewis, BNY Mellon, Sinead Cruise, Alexander Marrow, Elisa Martinuzzi, Megan Davies, Hugh Lawson Organizations: Moscow LONDON, Deutsche Bank, Reuters, Deutsche, Aeroflot, LSR, Novolipetsk, The Central Bank of Russia, Depository, JPMorgan, Chase, Citigroup, BNY, Commission, Control, Foreign Investments, Thomson Locations: Moscow, Ukraine, Russia, Russian, Washington, London, Carolina, New York

March 22 (Reuters) - A federal judge in New York ordered Iran's central bank and a European intermediary on Wednesday to pay out $1.68 billion to family members of troops killed in the 1983 car bombing of the U.S. Marine Corps barracks in Lebanon. Victims and their families won a $2.65 billion judgment against Iran in federal court in 2007 over the attack. Six years later, they sought to seize bond proceeds allegedly owned by Bank Markazi and processed by Clearstream to partially satisfy the court judgment. Bank Markazi has argued that the lawsuit was not allowed under the Foreign Sovereign Immunities Act (FSIA), which generally shields foreign governments from liability in U.S. courts. A Luxembourg court in 2021 ordered Clearstream not to move the funds until a court in that country recognizes the U.S. ruling.

☆ Luxembourg authorises some frozen Russian assets to be unblocked
▼ + stars: | 2022-12-20 | by ( ) www.reuters.com time to read: +2 min

The general licence issue should allow non-sanctioned Russian investors to transfer assets from the NSD, Russia's domestic paying agent that was sanctioned by the European Union in June, to other locations. Analysts from Otkritie Investments wrote that Luxembourg appeared to have taken numerous appeals from Russian depositories and investors into account. "This is a clear and positive signal that gives grounds to expect a decision on the issue of unblocking securities of Russian private investors," Otkritie analysts said. The EU sanctions on the NSD, as well as other Western measures aimed at restricting Russia's access to global financial infrastructure, have blocked many Russian investors' access to securities held in jurisdictions outside Russia. "Comments and interpretations of the text will be given later, after consultation with the group's legal consultant," the NSD said.

JPMorgan & Chase (JPM.N), Citigroup, Deutsche Bank (DBKGn.DE) and BNY Mellon act as depositary banks for most Russian depositary receipt programs, according to Clearstream. In statements to clients, some banks cited difficulties verifying there are enough shares to execute cancellations of depositary receipts. For example, BNY Mellon cited such a difficulty with Global Depositary Receipts in Russian gas company Novatek. While depositary receipts are under custody of global banks, the shares they represent are parked in Russia. Investors are meanwhile discussing ways online to meet the Russian requirements and how to pay fees to Russian banks.

☆ Russia's settlement depository demands EU sanctions be recognised as unlawful
▼ + stars: | 2022-09-26 | by ( ) www.reuters.com time to read: +2 min

Register now for FREE unlimited access to Reuters.com RegisterThe NSD filed a lawsuit at the European Court of Justice in Luxembourg on Aug. 12, but gave no further details. The EU sanctions on the NSD, as well as other Western measures aimed at restricting Russia's access to global financial infrastructure, have blocked many Russian investors' access to securities held in jurisdictions outside Russia. The NSD said that sanctions had been imposed based on "unsubstantiated" facts and that the Council had "failed to meet the required standard of proof", making the sanctions unlawful. Russian Eurobond issuers have started issuing securities to replace those stuck abroad due to sanctions imposed on Moscow for what it calls a "special military operation" in Ukraine. Register now for FREE unlimited access to Reuters.com RegisterReporting by Elena Fabrichnaya and Alexander Marrow, editing by Mark HeinrichOur Standards: The Thomson Reuters Trust Principles.

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