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Conversion of Russian issuers' ADRss (GDRs) into Local Shares - Contact Our Lawyers

Conversion of Russian Issuers' ADRss (GDRs) into Local Share

Updated on Thursday 05th January 2023

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Conversion of Russian issuers ADRss (GDRs) into Local Shares
 
The current social context allows the conversion of Russian issuers' ADRs (GDRs) into shares with an extended deadline. Even if it is a complex situation, there are solutions at hand in this regard, but it is recommended that you contact our lawyers in Russia to fully understand what this entails. We invite you to discover what brokerage accounts in Russia mean, with the help of our specialists.
 

Implications of Russian ADRs (GDRs) and what you can do

 
As we mentioned above, the current political and social context made the Russian government take some decisions regarding listing companies registered in Russia from foreign exchanges, respectively removing listings of such firms. Here we are talking about American Depositary Receipts (ADRs) or Global Depositary Receipts (GDRs) and their conversion into local shares respectively. We will review some interesting aspects in this regard:
 
  • As long as there are no sanctions, Russian ADRs (GDRs) can be transferred or converted into local shares with the help of brokerage accounts in Russia.
  • The conversion procedure involves opening an account, using a valid passport, proof of address, main financial profile, and information about the tax ID.
  • The transfer of securities can be done with International Securities Identification Codes.
  • Where necessary, information will be provided about additional sources of income, depending on the securities.
  • Russian ADRs (GDRs) can be transferred to local shares in a Russian C-type or S-Type depository.
  • It should be emphasized that the process of conversion of Russian issuers' ADRs (GDRs) into local shares also depends on the list of countries that have imposed restrictions against Russia, which makes matters more complicated. But, with the help of our Russian lawyers, you can solve it.
  • We mention that you can convert Russian issuers' ADRs (GDRs) into local shares without traveling to Russia.
  • You can also open several brokerage accounts in Russia, with the help of simplified schemes, respectively the applications sent by email and a power of attorney.
 
We, therefore, invite you to get in touch with our law firm in Russia and find out more information about the conversion of Russian issuers' ADRs (GDRs) into local shares.
 

Key information about the conversion of Russian issuers' ADRs (GDRs) into local shares

 
The conversion of Russian issuers' ADRs (GDRs) into local shares can be quite complex, given the current situation, but there are solutions for investors. In this case, brokerage firms can help, but not all of them can make the respective conversion, so you must be careful when choosing specialists in this field.
 
It is good to know that the Russian custodian is no longer needed for the conversion process. Also, the deadline for conversion was December 23, 2022, but there is the possibility of extending this period for certain companies.
 

Statistics about the Russian economy

 
We invite you to discover some important statistics and information regarding the Russian economy for 2021, and estimation data for the end of 2022:
 
  • GDP per capita is estimated at approximately USD 14,665.
  • According to data for July 2022, inflation was approximately 13.4%.
  • In 2021, the GDP in Russia grew by 4.7%.
 
We invite you to contact our law firm in Russia to find out comprehensive information about the conversion of Russian issuers' ADRs (GDRs) into local shares. Also, we are at your disposal with details about brokerage accounts in Russia.