Russia: Dividend payments on depository receipts (DRs) and Russian shares

26.08.2022

This announcement has been superseded by Announcement A22109.

On 10 June 2022, the Central Bank of the Russian Federation’s Board of Directors published a decision on establishing requirements for the distribution of dividends paid on shares of Russian joint-stock companies to the accounts of Foreign Nominees Holders (FNH), such as Clearstream Banking1, and depository banks of depository receipt programs (DR agents).

Pursuant to the Resolution, the payment of dividends on Russian issuers’ shares held in foreign nominee securities accounts will be carried out in a different manner to the procedure established by paragraph 4 of Article 8.7 of Federal Law No. 39-FZ dated 22 April 22, 1996 “On the Securities Market”.

According to the Resolution, NSD or the local DR agents’ custodian must submit a disclosure request to identify the beneficial owner of shares or DRs by providing:

  • Country of registration (citizenship); and
  • Documentation necessary for withholding tax purposes.

Clearstream Banking is currently seeking clarification on the exact impacts of this regulation. Furthermore, Clearstream Banking is consulting with competent authorities to which extent these actions may be supported.

Further information

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.