EAHCISS News (English)

On June 1st 2026 Presidential Decree 377 was published ( http://publication.pravo.gov.ru/document/0001202606010019 ). This decree extended the type C regime, resulting from decree 95 from the 5th of March 2022, to payments resulting from bank (term) deposits.  At the time we did not write a post about this, because in our analysis the changes would not affect many retail investors, because the regime does not apply to current accounts used for normal banking payments, and because decree 95 only applies to monthly payments that are above the 10 million Rubles montly threshold.  Yesterday, the Central Bank of Russia confirmed our interpretation and stated ( https://www.cbr.ru/Crosscut/LawActs/File/12214 ) that the 10 million Ruble threshold is a monthly threshold per account holder and that normal current bank accounts are do not fall under the scope of the extension by decree 377. The Central Bank of Russia also confirmed that term deposits can be extended automatically, thereb...

Earlier we reported on the extended deadline (until December 31st 2026) for the share distribution by Rusagro ( https://news.eahciss.org/2026/02/friendly-shareholders-of-cypriot.html?m=1 ).  In our previous post we also shared our legal analysis that holders of depositary receipts from jurisdictions unfriendly to Russia are not legally able to participate in the share distribution during the extended period.  Rusagro has confirmed to EAHCISS that they share this legal interpretation: "Under paragraph 21 of Article 7 [of Federal Law 470-FZ of the 4th of August 2023], it is correct that residents of unfriendly countries do not have the right to receive shares of PJSC Rusagro Group." However, in all the documents published by Rusagro ( https://www.rusagrogroup.ru/en/investors/news-events/press-releases/single-view/article/1421/ ) Rusagro seems to apply the same criteria as during the first period of the share distribution and provide the impression that holders of depositary rec...

JSC Rakurs Invest, the custodian for the shares underlying the depositary receipts of Etalon, has now confirmed that, in accordance with Article 5 of the Federal Law of 04.08.2023 No. 452-FZ "On Amendments to Certain Legislative Acts of the Russian Federation", holders of depositary receipts (ADRs / GDRs) of ETALON GROUP PLC (ISIN US29760G1031) have the right to carry out forced conversion of depositary receipts into local Russian shares starting from July 08, 2026. This process does not require any cooperation from your Western broker and takes place under Russian law. The deadline for submitting documents for participation in the forced conversion is November 5, 2026 (inclusive).  More information can be found on the website of Rukurs Invest: https://rakursinvest.ru/services/conversion/ Given the complexity of the procedure, and the need to work with local Russian notaries and translators, we strongly advise to consider working with a local Russian representative and to sta...

Gazprom paid a record dividend of 51.03 Rubles per ordinary share over the first 6 months of 2022. These dividends were not paid on ADRs due to the legal restriction of Clause 2 of Part 5 of Article 6 of the Federal Law of April 16, 2022 No. 114-FZ "On Amendments to the Federal Law "On Joint-Stock Companies" and Certain Legislative Acts of the Russian Federation" that was present back in 2022. Gazprom recently confirmed in their annual report over 2025 (for English version: https://drive.google.com/file/d/1LG8DMtSqVtdqNPoryoDAfJfR-hbKr3i1/view?usp=drivesdk ) that over 100 billion Rubles (over a billion Euros) of unpaid dividends were restored as retained earnings because the statutory period to claim these dividends expired. This amount is largely due to the past restriction on the payment on ADRs.  Dividends on converted ADRs In 2025 Gazprom paid approximately 11 billion Rubles in unpaid dividends. Magenta legal has reported that BNY (as the depositary ...

After the liquidation of the Sberbank shares underlying the ADR-program, various investors seem to wonder what the background is of this discount. Decree No. 81 of the President of the Russian Federation dated March 1, 2022, "On Additional Temporary Economic Measures to Ensure the Financial Stability of the Russian Federation" (Decree No. 81; https://www.consultant.ru/document/cons_doc_LAW_410578/ ) established a special procedure for the execution of transactions involving securities between residents of the Russian Federation and "persons of foreign states committing unfriendly acts". According to the general rule stipulated by Decree No. 81, transactions involving securities between residents of the Russian Federation and "unfriendly persons" are only possible with the permission of the Government Commission for the Control of Foreign Investment in the Russian Federation (the Government Commission). The minutes of the Government Commission meeting of th...

On the 8th of June 2026 JP Morgan announced that they have liquidated the shares underlying the ADRs of Sberbank: https://api.markitdigital.com/jpmadr-public/v1/cms/document?cmsId=520e5773254e470ba09e55b38bd59b9d&sequenceNo=1 JP Morgan sold the underlyings shares for $1.184027 per share, so $4.736108 per ADR. After fees and the correction for missing underlying shares due to forced conversion the cash distribution per ADR will be $4.476211 upon cancellation of the ADRs. The liquidation sale was executed at a significant discount to the current price at the Moscow Stock Exchange (MOEX) is approximately 322 Rubles per ordinary share (so 1,288 Rubles per ADR). JP Morgan has so far sold the underlying shares of four Russian ADR-programs at significant discounts to the share price at the MOEX: Sberbank, Magnit supermarkets, Mobile Telesystems and Novorossiysk Commercial Sea Port (NCSP). EAHCISS is trying to establish if ADR holders whose positions have been liquidated can now apply to c...