NSD is unaware of possible blocking of Russian securities in Kazakhstan depository

A representative of the Kazakh depository clarified to RBC that the notifications were sent “to individual depositors” and were related to the introduction of blocking sanctions against NSD. Clients can submit documents on the withdrawal of Russian securities from their nominal holdings until August 1.

IN NSD Press Service RB.RU has been informed that the depositary has no information about the letters of the Kazakhstan CSD to its clients and cannot comment on any of its actions, including those of a restrictive nature, that the CSD may take in relation to its clients in a foreign jurisdiction.

“NSD offers its clients, including Central Securities Depository JSC, settlements on Russian securities,” the depository said.

Director of Strategy IC “Finam” Yaroslav Kabakov He explained that the requirement of the Kazakhstan depository concerns securities issued in accordance with the legislation of the Russian Federation, the place of settlement of which is NSD. Basically, these are sovereign debt bonds, corporate bonds and shares accounted for in the Kazakhstan depository, according to the expert.

as he believes founder of the international consulting boutique Bespalov Finance Alexander Bespalovin general this is an expected situation. Due to the sanctions imposed on the Russian NSD and the Moscow Stock Exchange, all foreign partners trading in Russian securities found themselves in a difficult situation when interacting with these structures.

“Now almost all partner financial organizations in friendly countries actively consult with lawyers and authorities and, on this basis, already make their own decisions,” Bespalov said.

According to the expert, it is to be expected that other partners will refuse to work with the Russian NSD in order to avoid secondary sanctions.

“Our main recommendation is to keep Russian values ​​within the Russian framework, that is, in Russia. And, accordingly, to keep foreign documents only abroad and to have additional documents, at least a residence permit or, even better, citizenship of another country,” Bespalov recommended.

Member of the Russian Bar Association, Evgeniy Pantaziy He said that brokers must carry out transactions involving NSD before the end of July. The lawyer believes that from August 2, 2024, the possibility of executing orders by the depository of Russian financial instruments will be limited.

“As a result, clients’ assets in deposit accounts may be frozen. The owner of the securities is advised to withdraw them,” Pantaziy said.

• The Central Depository of Kazakhstan has about 140 securities with the RU prefix, which are registered with the NSD and their valuation is not disclosed.
• Lenta.ru quotes a statement by Russian State Duma deputy Nikolai Arefiev, who believes that Kazakhstan’s economy will suffer due to the withdrawal of assets. “These gaps will have to be filled by something,” the people’s representative said.