The legal and practical implications for noteholders regarding securities impacted by sanctions against Russia

This article was originally published in March 2023 for the TL4 Disputes Magazine (Issue 8, pp 20-21), under the title 'Securities that are impacted by sanctions against Russia: legal and practical implications for noteholders'. 

Have your investments been affected by sanctions against Russia? Perhaps you are a Russian-based investor who invested in Eurobonds that were held through the National Settlement Depository ('NSD') in Russia? Or a European/UK/US investor who invested in securities issued by Russian companies that have been affected by Russian counter sanctions? 

On 3 June 2022 NSD was designated as a sanctioned entity by the EU, and the European clearing systems stopped taking instructions from NSD. Since then, there has been a raft a further sanctions by the EU/UK/US as well as counter sanctions issued by Russia.

 For a brief discussion of these sanctions and the legal and practical implications for Russian and European/UK/US noteholders, read the full article or contact Julia Filippova of Withers LLP or Bulat Khalilov of Nektorov, Saveliev & Partners.