Insights

The Russian Federation has recently introduced major reforms expected to have a significant impact on depositary receipt (“DR”) programs established for the purpose of circulating and/or placing Russian securities in the form of DRs to international investors outside of Russia.

On December 7, 2011, the Russian Federation adopted a new Federal Law No. 415-Z, entitled “On Amendment to Certain Legislative Acts of the Russian Federation in Connection with Adoption of the Law “On Central Depository” (the “415-FZ Amendment”). The 415-FZ Amendment was adopted in conjunction with a new law providing for the appointment of a central securities depository in Russia (the “CSD Law”).

The 415-FZ Amendment comes into force on July 1, 2012 with the exception for provisions regulating DR Program Depo Accounts, defined below, which take effect on January 1, 2013.