En+ plans to keep listing of GDRs on foreign exchanges

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En+ Group sent an appeal to the Russian government to obtain permission to continue the circulation of the company's global depositary receipts (GDRs) on foreign exchanges. it is reported by TASS.

The company will announce the decision taken by the government separately.

“En+ Group announces that on May 4, 2022, it submitted an application to the government of the Russian Federation for permission to continue circulation of the company’s global depositary receipts ( GDRs   ) outside the Russian Federation,” the message says.

On April 16, Russian President Vladimir Putin signed a law prohibiting the placement and circulation on foreign stock exchanges of depositary receipts for the shares of Russian companies. Russian issuers are required to take measures to terminate contracts by May 5, 2022. At the same time, companies will have the opportunity to maintain depositary receipt programs: they must also apply for the appropriate permit before May 5.

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A security tied to the shares of a particular company and issued by a bank (depository bank). The main opportunity that a depositary receipt gives an investor is the opportunity to practically own shares of a foreign company, but at the same time remain within the framework of the legislation of the depository bank. For example, an American Depository Receipt (ADR) for the shares of a Russian company is, on the one hand, an American security, the trade of which is regulated by American law, on the other hand, it gives the right to a share of profits and the right to vote at a meeting of shareholders of a Russian company