Russia: Further information on forced conversions and forced transfers due to Federal Law 319-FZ (new Law 519-FZ) - Update
Note: This announcement, originally published on 16 December 2022, has been updated to provide customers with information on Federal Law No. 519-FZ. Changes have been highlighted.
Federal Law No. 519-FZ, published on 19 December 2022, introduced changes to Federal Law No. 319-FZ of 14 July 2022 for on-demand transfer of Russian securities out of foreign custody services providers. The law comes into force on 1 January 2023 (further-“law effective date”). The detailed procedure for the transfer is to be further established by the Central Bank of Russia (CBR) and Clearstream Banking1 will keep its customers informed as soon as the details are known.
In the meantime, Clearstream Banking reminds customers to inform Clearstream Banking without any delay if any of their holdings have been converted under the forced conversion process or is affected by a forced transfer process based on the Federal Law No. 319-FZ (the “Russian Law”).
For details on the forced conversion process, customers should refer to Announcements A22156, D22074 and A22154 on forced transfers.
Clearstream Banking is supporting the reconciliation process with the different involved parties.
Clearstream Banking reminds customers that due to uncertainties and circumstances beyond its control with regards to conversion procedures set forth under the Russian Law, settlement in Russian DRs and Russian securities will remain suspended in Clearstream Banking S.A. (CBL) and Clearstream Banking AG (CBF) until further notice to ensure the integrity of the securities issue.
In addition, income proceeds from Russian OFZs will not be credited until balances are reconciled. Further information on payments will be provided via the regular MT564 messages.
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.