10:29 28.02.2022

EU bars listing of Russian state cos' securities, expands borrowing restrictions

2 min read
EU bars listing of Russian state cos' securities, expands borrowing restrictions

The European Union has prohibited the listing of Russian state companies' securities on its exchanges, as well as expanded restrictions on raising debt in euros as part of its second package of sanctions against Russia.

The EU has prohibited the listing and provision of services on EU exchanges for securities issued by Russian state companies, the document published in the EU's Official Journal said. European depositories will also be prohibited from providing any services dealing with securities issued after April 12 to individuals and legal entities from Russia.

The EU has also expanded the list of companies and banks that cannot raise financing in the EU by placing new debt instruments and shares. It now includes Alfa Bank, Russian Railways (RZD) and Sovcomflot, among others.

The EU has prohibited the direct or indirect purchase, sale, provision of services or participation in the preparation of issues of securities and money market instruments issued by these companies after April 12.

Last week the United States imposed new sanctions on Russian companies' ability to raise debt and equity financing from U.S. investors. The U.S. list, like the EU list, includes Alfa Bank, RZD and Sovcomflot.

However, the EU list does not include restrictions on the purchase of new debt instruments issued by Gazprom, one of the most active Russian borrowers on international capital markets, while the U.S. prohibited the purchase of new debt issued by the Russian gas giant.

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