Pending the entry into force of a federal law prohibiting the placement and circulation of depositary receipts certifying rights in respect of shares of Russian issuers, PJSC Severstal notified Citibank. N.A., as depositary of its Global Depositary Receipts (GDR) program, on its implications and asked the depositary to consider the steps to be taken in connection with the termination of this program.
According to the press service of Severstal, as of the date of this message, the depository has not provided any response.
Law No. 114-FZ "On Amendments to the Federal Law "On Joint Stock Companies" and Certain Legislative Acts of the Russian Federation", published on April 16, provides that the circulation of depository receipts on foreign exchanges will be prohibited 10 days after the publication of the law .
Following the publication of the law, companies have 5 business days to take "necessary and sufficient" actions to terminate depositary receipt agreements. The same period is provided for the submission of supporting documents to the Bank of Russia. Companies will have the opportunity from April 27 to May 5 to apply to the Ministry of Finance to retain the listing. The decision to keep the listing or officials can make without the companies' appeal.
Earlier this week, NLMK Group declared that it plans to apply for the continued circulation of its depositary receipts on the London Stock Exchange.
