EN
Due to the imposition of sanctions on NSD not only by the European Union but also by a number of other foreign jurisdictions, including the US and the UK, upstream foreign depositories have notified NSD of the need to additionally provide a license for the unlocking of assets issued by the competent authority of the jurisdiction to which the unlocked assets are linked, even if a license to dispose of the corresponding assets has already been issued by the competent authority of Belgium/Luxembourg.
The depository and its client are advised to independently, including by engaging appropriate consultants, assess all possible risks associated with the transfer of securities and/or funds when submitting applications to NSD in the absence of the aforementioned authorizations from competent foreign authorities.
The client must also independently determine in each specific case whether the General Authorization applies or an Individual Authorization must be provided. The final decision on the applicability of the provided authorization(s) for unlocking assets remains with the official of Euroclear / Clearstream.
a copy of the General Authorization;
a link to the internet website page of the foreign regulator where the General Authorization is published;
an application for the transfer of funds / securities in accordance with the General Authorization (hereinafter — asset transfer application), completed according to the form in Appendices 12 and 13.
In applications completed according to the forms in Appendices 12 and 13, it is necessary to specify:
a list of securities for which the application is submitted (all ISIN codes with identical transfer details are indicated in one application);
a list of registration numbers of corresponding instructions for debiting securities from storage and/or accounting (operation code — 36);
a list of income payout corporate actions, the sums of which constitute the amount of funds subject to unlocking under the General Authorization.
At the same time, the income amount for securities subject to US taxation must be highlighted separately, indicating the net income amount and the tax specified in the General Authorization to be remitted to the US Internal Revenue Service.
a copy of the General Authorization;
a link to the internet website page of the foreign regulator where the General Authorization is published;
an application for the transfer of funds / securities for another person who is a client of the NSD depository, in accordance with the General Authorization (hereinafter — asset transfer application), completed according to the form in Appendices 14 and 15.
In applications completed according to the forms in Appendices 14 and 15, it is necessary to specify:
a list of securities for which the application is submitted (all ISIN codes with identical transfer details are indicated in one application);
a list of registration numbers of corresponding instructions for debiting securities from storage and/or accounting (operation code — 36);
a list of income payout corporate actions, the sums of which constitute the amount of funds subject to unlocking under the General Authorization.
At the same time, the income amount for securities subject to US taxation must be highlighted separately, indicating the net income amount and the tax specified in the General Authorization to be remitted to the US Internal Revenue Service.
If, from the moment operations on the NSD account at the foreign depository were suspended until the date of receiving the General Authorization, the depository's client transferred assets (or part of assets) corresponding to the General Authorization between their deposit accounts opened with different nominal holder-depositories, then asset transfer applications are submitted by the depositories whose deposit accounts currently hold the specified assets (obligations).
If you need to make changes to an asset transfer application previously submitted, you must provide the following to NSD:
an application to withdraw the previously submitted asset transfer application, completed according to the form in Appendices 16-19;
a new asset transfer application, completed according to the form in Appendices 12-15.
If the application is submitted for the transfer of assets that are payments on securities of foreign issuers, for which NSD's obligation to transfer arose from 02/01/2022 to 09/09/2023 and were not fulfilled and/or did not cease by 09/09/2023, the depository must also provide a written refusal to exercise the right to receive payments in rubles in accordance with paragraph 12 of Decree of the President of the Russian Federation No. 665 dated 09/09/2023 "On a Temporary Procedure for Fulfillment to Residents and Foreign Creditors of State Debt Obligations of the Russian Federation Expressed in State Securities with Nominal Value Stated in a Foreign Currency, and Other Obligations on Foreign Securities" (hereinafter – Refusal and Decree No. 665 respectively). The Refusal, accounting for all corrections in accordance with NSD's comments, is accepted no later than 5 (five) business days before the date of currency replacement of the obligations.
The Refusal is provided according to the form of Appendix 10 with the documents indicated in the refusal attached (if applicable). The Refusal must be signed by the depository, and if the depository is not the owner of the foreign issuer's securities, the Refusal must be signed by the depository, the owner, and each depository in the accounting chain for rights to such securities.
The depository may provide an application to withdraw the previously submitted application of the Depository of NSC JSC NSD to refuse receiving payments on foreign securities in rubles (hereinafter – Refusal Withdrawal), completed according to the attached form below, for the portion of payments on foreign issuer securities indicated in the Refusal that meet the following conditions:
do not belong to NSD's obligations relating to the execution queue in accordance with paragraph 12 of Decree No. 665, for which execution has been completed, and execution of the obligations of the next queue has commenced;
do not belong to NSD's obligations relating to the execution queue in accordance with paragraph 12 of Decree No. 665, for which the obligation execution procedure has commenced and is not completed, but the execution sequence for such obligations for the corporate action(s) indicated earlier in the Refusal has already passed, and execution of obligations for other corporate actions within this execution queue has commenced;
for which there are no less than 3 (three) business days from the date of submission of the Refusal Withdrawal until the date of currency replacement of the obligations in accordance with paragraph 12 of Decree No. 665, in the event that an instruction to transfer funds was not sent to the foreign depository regarding the specified payments, or, in case of submitting an instruction to transfer funds, an accounting document confirming the cancellation of the corresponding instruction to transfer funds to the NSD account has been received from the foreign depository;
for which there are no less than 14 (fourteen) days from the date of submission of the Refusal Withdrawal until the date of currency replacement of the obligations in accordance with paragraph 12 of Decree No. 665, in the event that an instruction to transfer funds was sent to the foreign depository regarding the specified payments, and at the same time no accounting document confirming the cancellation of the corresponding instruction to transfer funds to the NSD account has been received from the foreign depository.
In this case, it is necessary to provide the following to NSD:
an application to withdraw the previously submitted application of the Depository of NSC JSC NSD to refuse receiving payments on foreign securities in rubles, completed according to the form in Appendix 11;
withdrawal of the previously submitted asset transfer application, completed according to the form in Appendices 16, 18 (if the depository had previously provided an application for the transfer of funds or an application for the transfer of funds for another person who is a client of the NSD depository).
If the application and accompanying documents are submitted correctly, NSD will send the corresponding instructions (orders) for asset transfer to the foreign depository and will maintain communication with you through your organization's personal manager. The execution deadlines for instructions (orders) are not regulated by upstream depositories; however, we will do everything possible to implement the General Authorization as soon as possible.