CASE STUDY 1
You are not sanctioned under Swiss / EU / US sanctions law and want to sell securities (e.g. Eurobonds) issued by a Russian company which is subject to Swiss / EU sanctions because either the company itself is sanctioned in Switzerland / EU or its shareholders or top managers are sanctioned and your Swiss/EU bank refuses to transfer the securities to the potential buyer.
What sanctions apply?
✓ EU Regulation 269/2014, i.e. the assets of the Eurobond issuer are frozen and no funds or economic resources may be provided to them
The Bonds do not belong to, owned, held or controlled by such listed issuer or individual: the sale would not constitute making funds and economic resources available to such listed individuals and entities (EU. Such transactions should be allowed by Swiss/EU banks. E.g. securities of Yandex (major shareholder is sanctioned), Alrosa is itself on the list.
✓ EU Regulation 844/2014
Prohibition to purchase, sell, provide investment services or otherwise deal with transferable securities depends on the list in which the issue is designated and may apply to securities issued after a certain date.
What to do: Legal opinion addressed to banks stating the EU/ Swiss regulations)
CASE STUDY 2
You do not want to sell securities of Russian issuers at a discount, what are other possibilities?
Eurobonds, ADRs, Government Bonds: Programs implemented by the Russian Government and Russian companies which redeem their securities directly and make coupon payments.
Government Bonds:
- Get a notarized confirmation of the ownership in Swiss / EU banks
- Forced transfer of securities rights records to the National Securities Depository
ADRs: Check the program of ADRs conversion into shares of the Russian issuer
Eurobonds:
- Get a confirmation of the ownership in Swiss/EU banks
- Get coupon payments and/or redemption
