Russia: Settlement of OFZ Securities


Clearstream Banking1 informs customers that effective

19 October 2022

domestic debt of the Russian federation (OFZ) denominated in RUB and held under depository 5R in Clearstream Banking’s system, can now be settled internally on a free of payment basis.

Clearstream Banking will open a window for instructions with an intended settlement date up to and including 10 November 2022. 

Clearstream Banking notes the provisions of Russian law that enables investors in certain circumstances to receive deliveries from the account of certain holders of Foreign Nominee Accounts, such as Clearstream Banking, without the instruction of the account holder and considers that the risks of such delivery before 11 November 2022 are minimal.

Customers instructing the delivery of OFZ securities from their accounts with Clearstream Banking are required to ensure that the position to be delivered is not subject in whole or in part to any application to receive the securities in Russia under Russian Federal No. 319-FZ, “On Amendment of Certain Legislative Acts of the Russian Federation” or any other Russian procedure. When instructing internal delivery of OFZs, Clearstream Banking’s customers must provide the representation that they have taken reasonable steps to ensure that no such application has been made or will be made in respect of the position instructed for delivery.  In addition, delivering customers are required to represent that their instruction complies with any applicable sanctions, including those of the EU, the United States and the United Kingdom.  These representations taken together make up the “OFZ Delivery Representation”

Clearstream Banking reminds customers of the requirement to comply and ensure compliance by any of the customer’s underlying clients, with any applicable sanctions, including those of the EU, the United States and the United Kingdom. When instructing internal receipt of OFZs, customers must provide a representation of sanctions compliance that the transaction would comply with any applicable sanctions, including those of the EU, the United States and the United Kingdom, that it would not result in a violation of U.S. sanctions, in particular that any buyer of the transaction to be settled by the receive instruction is not a U.S. Person, the “OFZ Receive Representation”.

Both delivering and receiving parties are required to insert in the narrative field of their instruction the compliance with the OFZ Delivery Representation and the OFZ Receive Representation respectively (for example, field :70E::SPRO// of the MT54x instruction) or in a separate authenticated message (for example, MT599) referencing the Transaction Reference to allow reconciliation of the representation back to the instruction. The required text to signify the respective representation is  “SPRO//OFZREP”.

Further information

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

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.