Current status on our link with Russia

As the situation with our link to the Russian market evolves quickly, we are informing clients of the latest developments by Newsletter and Newsflash. Below, we summarise what we have communicated to date.

Banking

We have withdrawn the acceptance of the Russian ruble (RUB) as a settlement currency (i.e. you cannot settle against RUB in the Euroclear system anymore) and disabled our account with ING Bank, our Cash Correspondent in Moscow pursuant to Section 5.4.2.1 of the Operating Procedures of the Euroclear System. To view this document use your MyEuroclear login.

Therefore, clients are no longer allowed to transfer any RUB to ING Bank, our Cash Correspondent in Moscow (in favour of your Euroclear Bank account).

Clarification 16 March 2022 - we have been informed by ING Bank that wire transfers from Euroclear Bank clients to wire RUB out of the Euroclear system:

if the final beneficiary account specified in the wire transfer is in Russia, the payment instruction will be executed
if the final beneficiary account specified in the wire transfer is outside Russia, the payment instruction will not be executed

ING Bank Moscow is clarifying the situation with the Central Bank of the Russian Federation and will let us know if there are any changes to the above situation.

We remind you that you need to enter a valid INN or KIO code (tax id) in your wire transfer instructions. Please refer to RUB - Money transfer webpage for more details. To view this information, use your MyEuroclear login.

Collateral management

All securities issued by entities incorporated in the Russian Federation have been excluded from all Triparty transactions. For more details, please refer to our Newsflash published on 24 February 2022 by using your MyEuroclear login details.

Custody

Service	Status
Voluntary corporate actions	Voluntary corporate actions are no longer possible.
Mandatory corporate actions	For non-RUB payments on Russian domestic securities deposited in the National Settlement Depository (NSD), we have received confirmation that NSD will credit our cash account in the local cash clearing system (e.g. our account with TARGET2 for EUR and our account with our Cash Correspondent bank in the Fedwire system for USD), upon successful completion of their compliance controls. We will process the non-RUB payments for Russian domestic securities on your account, once we receive and reconcile the funds based on the credit confirmation that we receive in TARGET2 or from our Cash Correspondent bank. For RUB payments on Russian domestic securities, we are still clarifying the situation with NSD and we will inform you as soon as we have more information.

Service

Status

Voluntary corporate actions

Voluntary corporate actions are no longer possible.

Mandatory corporate actions

For non-RUB payments on Russian domestic securities deposited in the National Settlement Depository (NSD), we have received confirmation that NSD will credit our cash account in the local cash clearing system (e.g. our account with TARGET2 for EUR and our account with our Cash Correspondent bank in the Fedwire system for USD), upon successful completion of their compliance controls.

We will process the non-RUB payments for Russian domestic securities on your account, once we receive and reconcile the funds based on the credit confirmation that we receive in TARGET2 or from our Cash Correspondent bank.
For RUB payments on Russian domestic securities, we are still clarifying the situation with NSD and we will inform you as soon as we have more information.

Last updated: 24 March 2022

Note: conversions on Depository Receipts with underlying Russian securities are no longer possible. Please refer to Newsletter 2022-N-020 for more details and the list of impacted securities.

FundSettle

Fund management companies (FMCs) and transfer agents (TAs) are generating an increasing number of requests for information on ultimate beneficial owners (natural persons residing in Russia/Belarus or to all legal persons, entities or bodies established in Russia/Belarus).

Please refer to Newsletter 2022-FS-001 for more information.

Settlement

Recap of settlement options available for input

Security type	Denomination currency	Settlement type	Internal settlement	External settlement	Bridge settlement
Russian domestic securities	RUB	Against payment in RUB	X	X	X
		Against payment in any other currency	X	X	X
		Free of payment	√	X	X
	Any other currency	Against payment in RUB	X	X	X
		Against payment in any other currency	X	X	X
		Free of payment	√	X	X
International securities (XS ISINs)	RUB	Against payment in RUB	X	X	X
		Against payment in any other currency	√	X	√
		Free of payment	√	X	√
	Any other currency	Against payment in RUB	X	X	X
		Against payment in any other currency	√	X	√
		Free of payment	√	X	√

√ = eligible for settlement, provided that the security and/or your counterparty is not an ISIN/entity subject to Sanctions or restrictions under Regulation (EU) 833/2014 concerning restrictive measures in view of Russia's actions destabilising the situation in Ukraine (‘the Regulation’), as amended by Council Regulation (EU) 2022/328 of 25 February 2022

X = settlement not possible until further noticed

Last updated: 3 March 2022

Note on Depository Receipts

We confirm that we still allow the settlement of internal, Bridge and external transactions in eligible Global Depository Receipts (GDRs) and American Depository Receipts (ADRs) until further notice.

Reminder - if you are trading GDRs or ADRs over the Bridge with Clearstream Banking Luxembourg or with the local market, you should take into consideration all communications issued and measures taken by the respective (counterparty) custodian and depository banks.

We continue to closely monitor GDRs and ADRs for compliance with Sanctions.

We remind you that our Participants are expected to comply with all relevant regulatory and legal obligations related to Sanctions in application of, among others, Article 15 of the Terms and Conditions governing use of Euroclear. To view this information use your MyEuroclear login.

Note on specific securities

As of the end of the day on Tuesday, 24 May 2022, Bridge settlement is suspended temporarily for the four ISINs listed in the table below until further notice.

ISIN	Security name
XS0088543193	RUSSIAN FEDERAT/12.75BD FM W/POPT
XS0767473852	RUSSIAN FEDERAT/5.625BD 20420404 G
XS0971721450	RUSSIAN FEDERAT/4.875BD 20230916 G
XS0971721963	RUSSIAN FEDERAT/5.875BD 20430916 G

List of impacted securities

Certain securities that were previously blocked for settlement in Euroclear Bank due to Sanctions against Russia will be unblocked. You should ensure compliance with all applicable Sanctions for all new and pending instructions.

Please refer to Newsletter 2022-N-021 for more details.

Publications

Newsletter 2022-FS-001 - Sanctions against Russia and Belarus - Important information for FundSettle clients (Published 13 May 2022)
Newsletter 2022-N-036 - Amendment to Terms and Conditions governing use of Euroclear (Published 28 April 2022)
Newsflash - New Russian Federal Law n°114 - Impact on Depositary Receipts with Russian underlying securities (Published 27 April 2022) - To view this information use your MyEuroclear login.
Newsletter 2022-N-033 - RUB cash payments on Russian domestic securities (Published 25 April 2022)
Newsletter 2022-N-032 - Depository Receipts with underlying Russian securities - Opening of books for DR programs sponsored by Deutsche Bank (Published 22 April 2022)
Newsletter 2022-N-030 - Depository Receipts with underlying Russian securities - Opening of books for DR programs sponsored by Citibank, N.A. (Published 7 April 2022)
Newsletter 2022-N-029 - Depository Receipts with Russian underlying securities - Opening of books for DR programs sponsored by J.P. Morgan (Published 6 April 2022)
Newsletter 2022-N-023 - Settlement with Russian counterparties: MT 599 attestation requirement - Update (Published 30 March 2022)
Newsletter 2022-N-028 - Depository Receipts with Russian underlying securities - Conditional opening of books for DR programs sponsored by BNY Mellon (Published 30 March 2022)
Newsflash - RUB cash payments on Russian domestic securities deposited with the National Settlement Depository (Published 30 March 2022) - To view this information use your MyEuroclear login.
Newsflash - Russia - Mandatory corporate actions on Russian domestic securities deposited in the National Settlement Depository (Published 24 March 2022) - To view this information use your MyEuroclear login.
Newsflash - Russia - Settlement instructions with NSD as a counterparty in Euroclear Bank - To view this information use your MyEuroclear login.
Newsletter 2022-N-021: Securities subject to Sanctions against Russia - Updated (Published 18 March 2022)
Newsflash - Russia - Presidential Decrees No. 81 and No. 95 - Update (Published 16 March 2022) - To view this information use your MyEuroclear login.
Newsflash - Russia - Presidential Decrees No. 81 and No. 95 (Published 9 March 2022) - To view this information use your MyEuroclear login.
Newsletter 2022-N-023 - Settlement with Russian counterparties: MT 599 attestation requirement (Published 8 March 2022)
Newsletter 2022-N-022: Russia - Settlement update (Published 4 March 2022)
Newsflash - Depository Receipts with Russian underlying securities (Published 3 March) - To view this information use your MyEuroclear login.
Newsletter 2022-N-021: Securities subject to Sanctions against Russia (Published 2 March 2022)
Newsletter 2022-N-020: Depository Receipts with Russian underlying securities: Exchanges no longer possible (Published 1 March 2022)
Newsletter 2022-N-019: Central bank measures: Impact on our link with the Russian market (Published 28 February 2022 and updated 2 March 2022)
Newsletter 2022-N-018: Update on our link with Russia (Published 28 February 2022)
Newsletter 2022-N-16: Impact of UK and US Sanctions on our link with Russia (Published 25 February 2022)
Newsflash - Collateral Management - Exclusion of all securities issued by entities incorporated in the Russian Federation from all Triparty transactions with immediate effect. To view this information use your MyEuroclear login.

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Account Management

Tel: +32 (0)2 326 2812