EAHCISS News (English)

EAHCISS earlier announced that JPMorgan liquidated the shares underlying the Rosneft depositary receipts (GDR's): https://news.eahciss.org/2026/07/jp-morgan-liquidated-shares-underlying.html?m=1 JPMorgan confirmed in the notification that they received dividends on the shares underlying the GDR's since 2025 (see https://api.markitdigital.com/jpmadr-public/v1/cms/document?cmsId=88b769796a7f408d9386afac6a01fd3f&sequenceNo=7 ): "In February 2025, July 2025, January 2026 and July 2026, J.P. Morgan received dividends on the Rosneft Ordinary Shares underlying the outstanding DRs. However, distribution of dividends is not currently permitted under Russian regulations, which require these funds to be held in a restricted "type S" account in Russia. At such time that J.P. Morgan is permitted to do so, it will distribute such dividends pro rata among the Remaining DR Holders. J.P. Morgan cannot provide any assurance that any such additional distributions will be permit...

On the 21st of July 2026 JP Morgan announced that they have liquidated the shares underlying the ADRs of Rosneft: https://api.markitdigital.com/jpmadr-public/v1/cms/document?cmsId=88b769796a7f408d9386afac6a01fd3f&sequenceNo=7 JP Morgan sold the underlyings shares for $1.832142 per share, so $1.832142 per ADR. After fees and the correction for missing underlying shares due to forced conversion the cash distribution per ADR will be $$1.780982 upon cancellation of the ADRs. The liquidation sale was executed at a significant discount to the current price at the Moscow Stock Exchange (MOEX). The current MOEX price is approximately 345 Rubles per ordinary share (so 345 Rubles per ADR). JP Morgan has so far sold the underlying shares of five Russian ADR-programs at significant discounts to the share price at the MOEX: Rosneft, Sberbank, Magnit supermarkets, Mobile Telesystems and Novorossiysk Commercial Sea Port (NCSP). The liquidation by JP Morgan also makes it more easy to establish dam...

In an earlier post we explained that ADR holders are currently again eligible to receive dividends payments on ADRs. Since our post various other organisations wrote articles about this topic, and many of our members also received this week's Lawflash from Morgan Lewis (https://www.morganlewis.com/pubs/2026/01/update-russia-introduces-new-rules-for-dividend-payments-on-depositary-receipts). Because of the questions that we continue to receive about this topic we would like to take the recent dividend payments by Lukoil and Rosneft as an example. Due to the complexity of the procedure it is generally recommended to claim these dividends with help from a Russian representative. EAHCISS can refer you to representatives that we have good experiences with. If you successfully claim these dividends and are from a country that is considered unfriendly to Russia then the dividends will be paid into a type C account. Lukoil example  The record date for Lukoil dividends over the first nine m...

In this post we provide a fourth update on recent Russian court decisions. Case 4: Who needs a lawyer to claim Rosneft dividends in court...? The fourth case involves mr. Bychkov that held ADR's (depositary receipts) of Rosneft via the Cypriot broker EXT Ltd. and had them successfully converted via forced conversion. Mr. Bychkov then requested Rosneft to pay the unpaid dividends, which was only about 17,000 Rubles. Rosneft refused the request, stating that it wasn't sufficiently proven that mr. Bychkov owned the ADR's at the Rosneft dividends over 2021 that were returned by Raiffeisenbank to Rosneft (in the amount of 6,915,398,471.46 Rubles!!) included the dividends that were due to mr. Bychkov. Mr. Bychkov then went to court himself, without a lawyer. The relatively low claim of 17,000 Rubles would make it economically non-viable to be represented by a lawyer. Mr. Bychkov also didn't attend the hearing, probably due to travelling costs. The court established tha...

In this post we provide a first update on recent Russian court decisions. These court decisions were kindly provided by Irina Sibirina from the legal firm Itlektis.ru . More case law on Sberbank securities will follow soon. Case 1: Forced transfer of Rosneft shares and unpaid Rosneft dividends The first case involves an investor, mr. Gubaev, that bought Rosneft shares via the Swiss CBH Bank (the case materials speak in one section about directly buying ordinary shares but refer to converted depositary shares in another section). He applied to get his ordinary shares forcefully transferred from CBH Bank to his Russian brokerage account with ATON. According to the court materials, the chain of custody involved The Belgian Branch of Bank of New York Mellon and Citibank Russia. The Russian appellate court ruled in October 2023 that Citibank Russia had wrongfully denied the request for a forced transfer and ordered Citibank Russia to carry out the forced transfer. The full case materials ...