Russia

Russian company access to western capital

Guy Grayson, Norton Rose, Moscow. Please contact Chris Viner in the Moscow office on +7 095 244 3639

As a result of there being minimal exchange trading, and no trusted central depositary, central clearing or settlement exchange organisation in the Russian Federation (“RF”), there are few incentives for investors to trade on-shore. Taxation issues and problems with repatriating rouble returns pose further problems to the foreign investor. At present therefore, a depositary receipt programme (“DRP”) is still the main vehicle employed by RF issuers to access capital markets in the US and Western Europe.