Clearstream system blocked the account of the central depository of Russia

The international clearing organization Clearstream (a subsidiary of the Deutsche Börse exchange, based in Luxembourg) on ​​March 24, against the backdrop of Western sanctions, blocked the accounts of the National Settlement Depository (NSD, which acts as a central depository in RUSSIA). The blocking of the account by the system that provides settlements for international transactions with securities was reported by NSD itself.

“The decision to resume operations on the NSD account will be made after consideration by the competent regulatory authorities of Luxembourg of documents and information regarding NSD,” the national depository noted.

At the same time, there is no payment of income received to NSD's account with another international clearing organization - Euroclear. As previously noted by NSD, operations are suspended until Euroclear receives clarification on how the new regulations will be applied from the regulatory authorities.

This means that international transactions with securities, including the settlement of coupon payments and redemptions, are currently not actually executed.

In particular, operations on NSD's account with Euroclear were restricted “in order to implement Regulation (EU) 899/2014 concerning restrictive measures in connection with Russian actions destabilizing the situation in Ukraine, as amended and updated by Council Regulation (EU) 2022/ 328 of February 25, 2022". NSD stressed that after the restrictions are lifted, income will be transferred to depositors in the standard mode.