Liberalisation of Russian DR market effective by September

Author: Gemma Varriale | Published: 2 Aug 2011

Regulations raising the proportion of shares Russian companies can issue outside the country through depositary receipts (DRs) could be effective as early as the start of September.

"The process has started," said Alan Kartashkin, a Moscow-based partner with Debevoise & Plimpton.

"It will have a positive effect on the options available to Russian issuers and should give a boost to Russian IPOs."

On July 21 2011, the Russian Federal Service for the Financial Markets (the FSFM) published a draft order introducing amendments to rules on issuance of permits for DR programmes over shares of Russian issuers.

Under the existing rules, Russian companies are limited to holding no more...