General information - Russia
Depository
NATIONAL SETTLEMENT DEPOSITORY
12 Spartakovskaya Street
Moscow 105066
Russia
Depository Code: 5R
On 3 June 2022, the National Settlement Depository was subject to asset freezing measures by the European Union. Clearstream has taken appropriate steps to ensure compliance with the measures. As a consequence, network management due diligence arrangements will not be carried out on Depository 5R until further notice.
CBL-eligible security types
As communicated in Announcements A22018, A22021 and A22028, domestic Russian securities held on Clearstream Banking depository 5R are not eligible for settlement until further notice.
Russian Presidential Decree N°95 issued on 5 March 2022 and the Central Bank of Russian Federation (CBRF) Prescription No. 018-34-4/1468 dated 6 March 2022 suspend the execution of all operations involving the transfer of securities issued by Russian entities from accounts opened by foreign legal entities and individuals, including Foreign Nominee Holder account holders such as Clearstream Banking, to foreign legal entities and individuals. The National Settlement Depository has, in consequence, placed the securities deposits of Foreign Nominee Holders onto a blocked Type-C (sometimes known as a Type S) account in its books.
Securities deposited by CBL before the entry into force of P Russian Presidential Decree N°95 and Prescription 018-34-3/ 1468
- Government Bonds “OFZ” (“OFZ” denominated in RUB);
- Corporate bonds (issued after 1 January 2012);
- Municipal bonds;
- CSD-eligible equities;
- NSD-eligible equities.
Income Collection Arrangements on Russian Domestic Securities
Corporate action proceeds in securities deposited on Depository 5R are not credited to Clearstream Banking’s account with the NSD but to a Type-C (sometimes known as a Type S) account that the National Settlement Depository has opened in its books.
Clearstream Banking will reflect customer entitlements on a sundry memorandum account for the customer. The use of the memorandum account signifies that Clearstream Banking has not received and does not have access to the funds.
Sundry Memorandum Account – Type 3C – will be reported as:
SMA3C–[Customer Name/Customer Account Number]
Clearstream Banking does not have access to the cash entitlement for so long as the proceeds remain blocked on a Type C account at the NSD. Clearstream Banking will transfer the funds reflected in the sundry accounts to customers’ accounts once Clearstream Banking itself has gained access to the funds blocked upstream. Customers may not instruct Clearstream Banking in respect of such entitlements. If any customer believes that it fulfils the conditions set out in Russian regulation to enable Clearstream Banking to instruct the NSD to debit its Type C account, they should contact their Relationship Manager or Customer Service. The opening of a Type 3 account will be reported to the customer via MT599. The balance of the entitlement shown on the Type 3 account will be reported to customers via MT950.