O/Ref. 16980 dated 27 April 2023
Attn.: NSD clients
National Settlement Depository (NSD) in accordance with the Executive Board decision dated 27 April 2023 announces as follows:
1. from 01 April 2023 through 31 December 2023, there shall be established a marketing period, during which no fee is charged for services related to transfer of international securities, which are settled in accordance with the legislation of the Russian Federation, including regulations of the Bank of Russia and decisions of the Board of Directors of the Bank of Russia, official explanations of the Bank of Russia (clause 15.1 of the NSD Depository Services Fees) involving the transfer of ownership in transactions between:
- a controlled foreign company ("CFC"),
or
- a foreign entity/person not associated with foreign states committing unfriendly acts in relation to the Russian Federation, Russian legal entities and individuals (including if such foreign persons have the citizenship of these states, or their place of registration, their place of principal business or their place of predominant profit from their activities are those states), or an entity/person that is not controlled by that foreign entity/person, regardless of its place of registration (unless its place of registration is the Russian Federation) or the place of its principal business ("Friendly Non-Resident").
and
- a foreign entity/person associated with foreign states which commit unfriendly acts in relation to the Russian Federation, Russian legal entities and individuals (including if such foreign persons are nationals of these states, their place of registration, place of principal business or place of predominant profit derived from their activity is these states), or an entity/person that is controlled by that foreign entity/person, regardless of its place of registration (unless its place of registration is the Russian Federation) or the place of its principal business ("Unfriendly Non-Resident"), as a counterparty.
Transfers shall be made under counter instructions of the Sending Client (or the securities account/sub-account operator) and the Receiving Client (or the securities account/sub-account operator) without cash settlement (Transaction Code 16 and 16/1), (including for type "C" securities account transactions), provided that the following wording is specified in the Additional Information field of the instruction: "Transfer of securities with settlement under Russian law"
NSD is also requesting, by 28 April 2023 inclusive, a list of instructions* falling within the said marketing period (transaction code 16 and 16/1) sent to NSD from 1 April 2023 to 27 April 2023.
Please note that from 28 April 2023, the Additional Information field must contain the following wording: "Transfer of securities with settlement under Russian law"
2. from 01 May 2023 through 31 December 2023, there shall be established a marketing period, during which no fee is charged for services related to transfer of Russian and/or international securities from a non-resident to a resident, involving the transfer of ownership (clause 4.1 and/or 15.1 of the NSD Depository Services Fees), provided that the following conditions are met:
- this is the transfer of securities of Russian and/or foreign issuers as a result of transactions involving the purchase by a resident from a non-resident, which were authorised by the Government Commission,
- this is the transfer of securities under counter instructions of the Sending Client (or the securities account/sub-account operator) and the Receiving Client (or the securities account/sub-account operator) without cash settlement (Transaction Code 16 and 16/1), (including for type "C" securities account transactions), subject to the approval of the Government Commission authorisation and the following wording in the Additional Information field of the instruction: "Transfer on the basis of authorisation of the Government Commission for the purchase of securities by a resident from a non-resident".
The marketing period shall apply (including to type "C" securities accounts) provided that transactions conducted in accordance with this clause, comply with legal requirements, including regulations of the Bank of Russia and decisions of the Board of Directors of the Bank of Russia, and official explanations of the Bank of Russia.
If you have any enquiries regarding this notice, please contact your account managers at NSD by phone: +7 495 956-27-90, +7 495 956-27-91.
* Their registration numbers.