What to do now with the Russian ADR/GDR?

Wednesday, 17. August 2022

Breaking News: Clearstream will continue to allow investors to convert Russian ADR/GDR into original shares until 15 October 2022. However, the investor must disclose a Russian depositary for this purpose. These could be Citibank Moscow, Gazprombank and the broker Freedom Finance, whereby Freedom Finance also has a branch in Berlin on Kurfürstendamm. An auditor from Potsdam also offers to convert Gazprom ADRs into original shares for a certain fee.

Registration with Citibank Moscow, Gazprombank (for Gazprom only) or Freedom Finance can be done online. Of course, once the conversion has taken place, it will still not be possible to trade in Russian shares, as foreigners have not been able to trade on the Moscow Stock Exchange until now. It is possible, however, that a new market segment for foreigners will be opened after the end of the war or at least after some sanctions have been lifted.

It is easier to do this online via the broker Freedom Finance, but here, too, haste is required, as the account opening at Freedom Finance and the transfer to one’s own custody account at Freedom Finance must be completed by 6 p.m. on 15 October 2022. Freedom Finance is a broker listed on NASDAQ in New York, but also has access to the Moscow Stock Exchange. Freedom Finance (web; www.freedom24.com) also has a branch in Berlin on Kurfürstendamm. If your bank/broker has problems converting the ADR/GDR into original Russian shares, please use the following link, https://freedom24.com/invite/?utm_sou…, to register with the broker Freedom Finance and open an account there.

The account opening is then done online (preferably with a smartphone). You need a passport or ID card, a recent bill with your address on it (e.g. electricity or water bill) and then you go through a verification process online via video/photo. The geopolitical dangers thus accumulate in the months of August/September, which calls for caution among investors. Investors in Russia now have the problem of converting the ADR/GDR into original shares.

The broker Freedom Finance could make this possible, but haste is required. Andreas Männicke gives his assessments of the geopolitical dangers, but also of the possibilities of converting the ADR/GDR into original Russian shares in his market letter EAST STOCK TRENDS (www.eaststock.de) and in his new EastStockTV video, episode 197 at www.YouTube.com , which will follow later.

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