26.06.2023, 11:22
Deutsche Bank says it can no longer guarantee access to Russian shares
Source: OREANDA-NEWS
OREANDA-NEWS Deutsche Bank has informed its clients that it can no longer guarantee full access to their Russian shares, Reuters reports. According to the agency, foreign investors face difficulties in returning "stuck investments" in Russian companies.
Reuters refers to a letter from Deutsche Bank dated June 9. According to him, the bank found a shortage of shares that provide depository receipts issued by the bank before the start of the Russian military operation in Ukraine. These shares are located in Russia in another depository bank, its name is not given. Deutsche Bank explained the situation by Moscow's decision to allow investors to convert part of the depositary receipts into Russian shares. The conversion was carried out without the "participation or supervision" of the German bank, the document claims.
According to Reuters, the shares of Aeroflot, the construction company LSR Group, Mechel and the Novolipetsk Metallurgical Combine were affected. The agency notes that this is the first major bank to officially notify holders of depositary receipts that they may not receive ownership of all their shares.
As one of the sources told Reuters, Deutsche Bank now allows investors to exchange depositary receipts for shares as part of its plans to leave Russia. JPMorgan & Chase, Citigroup and BNY Mellon act as depository banks for most other Russian depositary receipt programs. All three banks declined to comment on whether they had also identified stock flaws.
Reuters refers to a letter from Deutsche Bank dated June 9. According to him, the bank found a shortage of shares that provide depository receipts issued by the bank before the start of the Russian military operation in Ukraine. These shares are located in Russia in another depository bank, its name is not given. Deutsche Bank explained the situation by Moscow's decision to allow investors to convert part of the depositary receipts into Russian shares. The conversion was carried out without the "participation or supervision" of the German bank, the document claims.
According to Reuters, the shares of Aeroflot, the construction company LSR Group, Mechel and the Novolipetsk Metallurgical Combine were affected. The agency notes that this is the first major bank to officially notify holders of depositary receipts that they may not receive ownership of all their shares.
As one of the sources told Reuters, Deutsche Bank now allows investors to exchange depositary receipts for shares as part of its plans to leave Russia. JPMorgan & Chase, Citigroup and BNY Mellon act as depository banks for most other Russian depositary receipt programs. All three banks declined to comment on whether they had also identified stock flaws.
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