The Central Bank decided to simplify the entry of Russian issuers into foreign markets by proposing to cancel the limit on the share of shares of Russian companies, the placement and public circulation of which are supposed to be outside the Russian Federation, the regulator said. The draft guidance (.pdf) has been posted for public comment. It is scheduled to enter into force in the second half of 2021.
Now there are two restrictions on the placement and circulation of shares on foreign exchanges. Their total number should not exceed 25% of the total volume of shares of one type, and no more than 50% of the total number of offered shares may be traded abroad. Such limits were explained by the desire to reduce the outflow of trading activity from Russia to foreign markets, the Central Bank said.
Elena Kuritsyna, director of the corporate relations department of the Bank of Russia, explained that in recent years there has been a “steady flow of liquidity” on shares with a double listing to the Russian exchange market. “We expect that the abolition of restrictions will remove unnecessary barriers and become an additional incentive for Russian companies to enter the public equity capital markets,” the press service of the Central Bank quoted Ms Kuritsyna as saying.