Lukoil, Rosneft, Tatneft Investors Must Convert ADRs by October 2024 to Avoid Loss

Investors in Russian companies like Lukoil, Rosneft, and Tatneft face a crucial deadline to convert their American Depositary Receipts (ADRs) into shares by October 1, 2024. This opportunity comes thanks to a new OFAC license and measures by the European Union that facilitate ADR conversions.

The introduction of OFAC License 100A and the European Union’s 11th sanctions package has enabled European clearinghouses such as Clearstream and Euroclear to support the conversion process, previously hindered by sanctions related to the Russia-Ukraine conflict.

Banks and brokers are advising clients to act immediately to prevent potential losses. Complete conversion instructions must be submitted to depositary receipt (DR) agents like Deutsche Bank, Citibank, and JP Morgan by the October deadline. For successful conversion, investors will require an account linked to the Russian National Settlement Depository.

Furthermore, converted ADR holders can claim previously unpaid dividends through a request to the Russian issuers. Future dividends will be credited automatically, requiring a special type “C” ruble account for investors from “unfriendly countries.”

WEISSWERT Rechtsanwaltsgesellschaft mbH is assisting investors through the ADR conversion process and dividend claims. However, unresolved ADR issues from issuers such as Gazprom and Nornickel remain. Investors can find more information and support on WEISSWERT’s website.