Transfer of Ruble Payments for Securities Accounted for in Foreign Depositories in Accordance with Paragraph 3 of Decree No. 198 of 03.19.2024
Transfer of Ruble Payments for Securities Accounted for in Foreign Depositories in Accordance with Paragraph 3 of Decree No. 198 of 03.19.2024
In accordance with Decree No. 198 of the President of the Russian Federation dated 03.19.2024, NSD has established a procedure for transferring payments for securities accounted for in foreign depositories (hereinafter referred to as 'payments'), which were not previously transferred to security owners in accordance with the Board of Directors of the Central Bank of Russia Resolutions dated 12.23.2022 and 12.22.2023.
Which payments can be received under paragraph 3 of Decree No. 198?

Payments for securities credited by 03/19/2024 to type 'C' accounts of foreign nominal holders or foreign payment agents opened in accordance with Decree No. 95 of the President of the Russian Federation of 03/05/2022 "On a Temporary Procedure for Fulfilling Obligations to Certain Foreign Creditors" (hereinafter - Decree No. 95).

For which securities can payments be received (hereinafter referred to as 'securities')?
  • shares of Russian joint-stock companies;

  • federal loan bonds;

  • Russian bonds with centralized accounting (storage);

  • depositary receipts for shares of Russian joint-stock companies;

  • eurobonds for which a Russian legal entity bears obligations.

The aforementioned securities must have been acquired before March 1, 2022, or after March 1, 2022 (provided that, starting from March 1, 2022, the persons exercising rights under the securities were not foreign creditors specified in paragraph 1 of Decree No. 95, except for foreign creditors recognized as controlled foreign companies in accordance with Decree No. 738 of the President of the Russian Federation dated October 15, 2022 "On the Application of Certain Decrees of the President of the Russian Federation").

How can payments for securities be received?

For security owners who are clients of foreign depositories that have type C depository accounts for foreign nominal holders opened at NSD

If your securities are accounted for in foreign depositories that have type C depository accounts for foreign nominal holders opened at NSD, you must submit an application for payment disbursement and documents confirming your claims to NSD. The list of information and documents is determined by the Resolution of the Board of Directors of the Central Bank of Russia dated April 12, 2024.

For security owners who are clients of foreign depositories, if such foreign depositories have depository accounts opened at a Russian depository other than NSD

If there is a foreign depository in the chain of rights accounting for your securities that has a depository account opened at a Russian depository other than NSD, you must contact that Russian depository to receive payments.

You can obtain information on where the foreign depository's account is opened by contacting the broker through whom the securities were purchased.

For security owners who are clients of foreign depositories, if there are no Russian depositories in the rights accounting chain for the securities, including NSD

In the event that:

  1. there are no Russian depositories in the securities rights accounting chain, including NSD,

  2. payments for securities have been transferred to a type 'C' account of a foreign payment agent opened at NSD.

The security owner has the right to submit an application for payment disbursement to the Russian depository or the eurobond debtor that transferred funds to the type 'C' account of the foreign payment agent, indicating the details of their own ruble-denominated bank account.

List of securities and payments for which the owner can apply directly to NSD:

Debtor
ISIN
Record Date
Payment Date
Amount per 1 Bond, ₽

VEB.RF

XS0559915961

20.05.2022

23.05.2022

2 002,13

VEB.RF

XS0993162683

20.05.2022

23.05.2022

749,51

VEB.RF

XS0800817073

20.06.2022

05.07.2022

1 659,46

VEB.RF

XS0800817073

20.06.2022

05.07.2022

55 085,80

VEB.RF

XS0993162683

07.11.2022

21.11.2022

1 793,71

In all other cases, we recommend contacting the foreign depository you are a client of, or the eurobond debtor, to receive payments.

For security owners who are clients of Russian depositories, if there is no foreign depository in the securities rights accounting chain

Payments for security owners who are clients of Russian depositories, where there is no foreign depository in the securities rights accounting chain, are transferred in rubles in accordance with Article 8.7 of Federal Law No. 39-FZ "On the Securities Market" dated April 22, 1996, commonly known as "cascade payments".

If your securities are accounted for through NSD, payments will continue to be transferred to you in rubles from your Russian depository. You do not need to submit any applications or additional documents to NSD.

If you do not receive a payment from the Russian depository within the established timeframe, you must contact your Russian depository for clarification. You do not need to submit any applications or additional documents to NSD.

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