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This content was produced in Russia where the law
restricts
coverage of Russian military operations in Ukraine
(Adds details)
MOSCOW, Feb 7 (Reuters) - Russia's largest liquefied
natural gas (LNG) producer Novatek said on Tuesday it
was delisting its depositary receipts from the London Stock
Exchange, where its securities have effectively been suspended
from trading for almost a year.
Listing of securities on Western stock markets used to be a
matter of prestige for Russian companies, facilitating their
access to Western money and improving their investor base.
However, President Vladimir Putin signed a bill in April
last year requiring Russian companies to delist their depositary
receipts to reduce the influence foreign countries could have
over them, except if they were granted permission to remain
listed.
Initially, Russia in May gave 15 companies, including metals
giant Nornickel and Novatek, approval to remain listed
on foreign exchanges.
The London Stock Exchange suspended trading in the
depositary receipts -- which represent shares in a foreign
company -- of Russian companies in early March after Moscow sent
thousands of troops into Ukraine for what it called a "special
military operation".
"Novatek... in connection with the actual suspension of
trading of the Company's depositary receipts from 3 March 2022,
hereby notifies of its request to the UK Financial Conduct
Authority (FCA) to cancel the listing of the Company's global
depositary receipts," Novatek said on Tuesday.
It said that March 7, would be the last day of listing for
its global depositary receipts (GDR) on the London Stock
Exchange.
Following the LSE listing cancellation, the company will
continue listing its shares on the regulated market of the
Moscow Exchange, while the GDR program remains in force and is
operational, Novatek said.
GDR holders may exercise their rights under the securities subject to applicable Russian law. (Reporting by Reuters; Editing by Bernadette Baum)
