HomeStockNornickel is first Russian agency to get OK to maintain itemizing overseas...

Nornickel is first Russian agency to get OK to maintain itemizing overseas By Reuters



© Reuters. FILE PHOTO: The brand of Russia’s miner Norilsk Nickel (Nornickel) is seen on a board on the St. Petersburg Worldwide Financial Discussion board 2017 (SPIEF 2017) in St. Petersburg, Russia, June 1, 2017. REUTERS/Sergei Karpukhin/File Photograph

(Reuters) – Metals big Nornickel has turn out to be the primary Russian firm to be granted permission by a authorities fee to maintain its itemizing overseas – for one yr for now.

Nornickel, the world’s largest producer of palladium and refined nickel, and different giant Russia-registered corporations have sought authorities approval to maintain their depositary receipts traded on overseas bourses.

The approval has been wanted since President Vladimir Putin in April signed a invoice requiring Russian corporations to delist their depositary receipts overseas in a bid to cut back foreigners’ management over these corporations.

Nornickel mentioned on Thursday a authorities fee had authorised its request to keep up the circulation of its American Depositary Receipts (ADRs) exterior Russia till April 28, 2023.

The permission would give the metals producer time to evaluate obtainable alternatives and steps to assist its long-term funding attractiveness, it added.

“It is vital {that a} precedent occurred for a Russian firm to be allowed to proceed buying and selling depositary receipts (DR) overseas. In different phrases, it’s seemingly that different corporations will be capable to retain the DR programme,” analysts at BCS mentioned in a word.

Sustaining a overseas itemizing might not directly imply that the corporate will proceed to stick to finest company governance and disclosure practices. The choice can also be constructive for the corporate’s interplay with Western buyers in the long run, BCS added.

Russian metal producers NLMK and MMK, fuel producer Novatek, and corporations like Sistema, Magnit and En+ have mentioned that they’ve additionally utilized for comparable permission. The results of their functions is but to be disclosed.

A request by Russian fuel big Gazprom (MCX:) was rejected and the corporate expects delisting of its depositary receipts on Might 31.

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