18 Nov 2025 18:08
Russia’s State Duma adopts in second reading Finance Ministry’s amendment on obligation to pay dividends on depositary receipts
MOSCOW. Nov 18 (Interfax) – As part of the budget package, the State Duma approved in the second reading the Finance Ministry’s amendment that requires Russian issuers that maintain existing depositary receipt programs to transfer dividends not only to shareholders but also to DR holders, thereby replenishing the exchange fund in type “C” accounts.
The corresponding clause was included in the government amendments to the second reading of the draft Federal Law “On Suspending Certain Provisions of Legislative Acts of the Russian Federation, Amendments to Certain Legislative Acts of the Russian Federation, and Establishing Specifics for Budget Execution of the Budget System of the Russian Federation in 2026.”
The explanatory note to the amendments states that in order to eliminate regulatory arbitrage and pursuant to the president’s instructions following the September 16 meeting on economic issues, it was proposed to amend Federal Law No. 114-FZ, as well as Federal Law No. 452-FZ, dated August 4, 2023, “On Amending Certain Legislative Acts of the Russian Federation,” stipulating “the obligation of all Russian issuers to pay dividends if a decision is reached to pay them on all shares, including those recorded in depository accounts under depository programs.” “If holders of securities of foreign issuers certifying rights to shares of Russian issuers are unfriendly non-residents, dividends will be credited to type “C” accounts, taking into account current anti-sanctions regulations,” according to the document.
The start of the period for an investor to claim dividends from the issuer, declared and not paid before the date of entry into force of the proposed amendments, is planned to be set from the date of conversion of DRs into shares, and not from the moment that the Russian issuer reaches a decision to pay dividends.