Ukraine / Russia Related Sanctions

EU Restrictive Measures Against Russia

  • On 31 July 2014, the Council of the European Union (EU) issued Council Regulation No 833/2014, whereby it shall be prohibited to directly or indirectly purchase, sell, provide brokering or assistance in the issuance of, or otherwise deal with transferable securities and money-market instruments with a maturity exceeding 90 days, issued after 1 August 2014 by certain named entities, entities established outside the EU which are owned more than 50% by a named entity, or any person acting on behalf of or at the direction of the foregoing. 
  • On 8 September 2014,the Council of the European Union (EU) issued Council Regulation No 960/2014, amending Regulation 833/2014, whereby it shall also be prohibited to directly or indirectly purchase, sell, provide investment services for or assistance in the issuance of, or otherwise deal with transferable securities and money-market instruments with a maturity exceeding 30 days, issued after 12 September 2014, by certain named entities, entities established outside the EU which are owned more than 50% by a named entity, or any person acting on behalf of or at the direction of the foregoing.
  •  The full text of the Council Regulation No 833/2014 can be found at: http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014R0833&from=EN, which has been amended by Council Regulation (EU) No 959/2014 of 8 September 2014, published in the Official Journal of the EU on 12 September 2014, which can be found at: http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:L:2014:271:FULL&from=EN
  • The United Kingdom Financial Conduct Authority (FCA) has stated that for so long as the sanctions remain in force it does not expect to admit to listing securities issued after 1 August 2014 by issuers within the scope of the Regulation. It has also stated that it expects, for so long as the sanctions remain in force, that depositaries for GDR issuers within the scope of the Regulation will not issue new depositary receipts. The FCA notice can be found at:  http://www.fca.org.uk/about/what/protecting/financial-crime/money-laundering/events-ukraine
  • Details of the depositaries with depositary receipt programs admitted to trading on the International Order Book trading service, including closed notice for those programs, can be found at:

            BNY Mellon - http://www.adrbnymellon.com
            J.P. Morgan - https://www.adr.com
            Deutsche Bank - https://www.adr.db.com
            Citi - https://www.citi.com/dr

  • For so long as the sanctions remain in force the Exchange does not expect to admit to trading securities issued after 1 August 2014 by issuers within the scope of the Regulation.  Please also note that the Exchange has modified its admission to trading process (at draft and final Form 1 stages).  Issuers and/or advisers acting on the issuer’s behalf must now confirm to the Exchange that the issuer does not fall within the scope of the Regulation. 

            Member Firms are reminded that they must conduct their own due diligence to ensure they comply with any applicable current or future sanctions.

More detail on the sanctions and other UK and EU financial sanctions maintained by the United Kingdom HM Treasury can be found at:
https://www.gov.uk/government/publications/financial-sanctions-consolidated-list-of-targets

OFAC Sanctions - 6 April 2018

  • On 6 April 2018 the US Department of the Treasury's Office of Foreign Assets Control ("OFAC") issued new designations against Russian individuals and entities. Further information in relation to these sanctions can be found at this link. Under the provisions of General License no. 13 (see link), US persons have until 12:01am 7 May 2018 (EST) to divest or transfer their holdings in the relevant securities to non-US persons.
  • In relation to EN+ Group, OFAC issued an updated General License no. 13A on 1 May 2018. Under the revised provisions US persons have until 12.01am (EDT) 6 June 2018 to divest or transfer their holdings in the relevant securities to non-US persons. Further information in relation to General License no. 13A and these sanctions (including FAQs) can be found on OFAC's website.
  • Member firms are reminded that they must conduct their own due diligence and take appropriate measures to ensure that they comply with any applicable current or future sanctions and that they are not using London Stock Exchange’s (“the Exchange”) systems to perform transactions that would facilitate direct or indirect transactions by US persons in breach of these sanctions.
  • En+ Group plc (“EN+”) and United Company Rusal plc (“Rusal”) were designated as entities subject to the sanctions. Depositary Receipts of EN+ are admitted to the UK Listing Authority’s Official List and admitted to trading on the Exchange‘s International Order Book trading service. Global Depositary Shares of Rusal have a primary listing in the European Union (“EU”) on Euronext Paris and are offered for trading on the Exchange’s MTF (SETSqx trading service).* If all trading is suspended by the EU National Competent Authority for listing these securities will be immediately suspended from trading on the Exchange.
  • EN+ has two lines admitted to trading on the Exchange, a 144a line (US29355E1091) available for trading only for eligible Qualified Institutional Buyers in the US, and a Reg S line (US29355E2081). For as long as the OFAC sanctions remain in force, trading in the 144a line of En+ (US29355E1091) will be suspended on the Exchange.
  • Please see link to Stock Exchange Notices 03/18, 04/18, 05/18.
  • Details of the depositaries with affected programmes, including any closed notices for those programmes, can be found at:

           Citi - https://www.citiadr.idmanagedsolutions.com

           BNY Mellon - http://www.adrbnymellon.com

  • This does not constitute legal advice.

*Rusal suspended on 10 April 2018.