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Gazprom and other Russian shares


reformed nice guy

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leonardratso
2 hours ago, Agent ZigZag said:

Well done nice guy

Hes a reformed nice guy, implying hes not so nice.
But anyway, good research there, ill try lloyds next week since i still hold about £1200 of gazprom in the .de gdr and a couple of hundred evraz with them, ill report back here and let you know what they say, i dont expect them to be any cop but if theres any nuggets or gems then lets see.

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reformed nice guy

Got a reply back. Much of it has already been mentioned above.

However, unless you go to Moscow to open a full brokerage account then "currently only accounting and storage of securities is possible"

 

 

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DoINeedOne

So i got an update from HL

 

Dear xxxxxxxxxx

Thank you for getting in contact with us and I hope this message finds you well.

I have spoken to my Corporate Actions team regarding your holding in Gazprom.

In compliance with Russian Federal legislation PJSC Gazprom is terminating its ADRs. As such holders of the ADRs will be entitled to receive 2 ordinary shares (trading in Russia) in place of their ADRs.

Once our position has been confirmed our Corporation Actions team will be writing out all to clients affected by this.

We don’t have any current timeframes for this but we will aim to write out as soon as we can.

I hope this has been of assistance. If you have any other questions, please get back to me.

Kind regards

Matthew Waters
Hargreaves Lansdown

Please note the information contained in this email should in no way be construed as personal advice. If you are unsure about the suitability of a product or investment for your circumstances or do not know how best to proceed you should seek professional financial advice.

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supernaut

I questioned X-O about my Gazprom after getting a letter (1k worth of shares, or was), they just resent the letter

Main points being 

1. As an Execution Only Broker we advise all clients to research and monitor the stock they hold. We do not advise of stock suspensions.

2. Due to amendment in Russian laws PJSC Gazprom has instructed BNY Mellon to terminate the deposit agreement. Cancellation of admission to trading on the London Stock Exchange's main market is expected to occur within 20 business days of 29th April 2022.

It is expected that the DRS will be converted to Gazprom shares through standard procedure under the deposit agreement subject to mandatory requirements of Russian law.

Please note Jarvis will be unable to facilitate any trading in the resultant shares.

I took this to mean tough luck we wipe our hands of it, have started the process outlined by reformed nice guy ,  waiting to hear back but reformed nice guy's most recent post suggest it will be to no avail if I understand correctly.

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BadAlchemy
2 hours ago, DoINeedOne said:

So i got an update from HL

 

Dear xxxxxxxxxx

Thank you for getting in contact with us and I hope this message finds you well.

I have spoken to my Corporate Actions team regarding your holding in Gazprom.

In compliance with Russian Federal legislation PJSC Gazprom is terminating its ADRs. As such holders of the ADRs will be entitled to receive 2 ordinary shares (trading in Russia) in place of their ADRs.

Once our position has been confirmed our Corporation Actions team will be writing out all to clients affected by this.

We don’t have any current timeframes for this but we will aim to write out as soon as we can.

I hope this has been of assistance. If you have any other questions, please get back to me.

Kind regards

Matthew Waters
Hargreaves Lansdown

Please note the information contained in this email should in no way be construed as personal advice. If you are unsure about the suitability of a product or investment for your circumstances or do not know how best to proceed you should seek professional financial advice.

Thanks for the update. Also showing "N/A" in my HL SIPP. Not losing sleep over this as I didn't buy all that much (but I easily could have done!). I've taken screen shots and made sure I have the contract note downloaded and saved (HL contract notes in My Account, Portfolio History...). Have emailed HL again to ask for clarification e.g whether we should be creating Gazprombank accounts for them in advance or whether HL will handle it all. No harm keeping the pressure on and getting an email trail going with them, even if they don't know how they will handle it yet.

This link https://topforeignstocks.com/2022/05/18/russias-gazprom-to-terminate-adr-program/ contains the Corporate Action Notice from BNY Mellon about Gazprom Neft ADRs. The letter states that ADR holders have until June 16 2023 to surrender ADRs in return for underlying shares. Have asked HL if they can confirm that is the case with the Gazprom ADR. I expect it would be the same.

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DoINeedOne
1 hour ago, BadAlchemy said:

Thanks for the update. Also showing "N/A" in my HL SIPP. Not losing sleep over this as I didn't buy all that much (but I easily could have done!). I've taken screen shots and made sure I have the contract note downloaded and saved (HL contract notes in My Account, Portfolio History...). Have emailed HL again to ask for clarification e.g whether we should be creating Gazprombank accounts for them in advance or whether HL will handle it all. No harm keeping the pressure on and getting an email trail going with them, even if they don't know how they will handle it yet.

This link https://topforeignstocks.com/2022/05/18/russias-gazprom-to-terminate-adr-program/ contains the Corporate Action Notice from BNY Mellon about Gazprom Neft ADRs. The letter states that ADR holders have until June 16 2023 to surrender ADRs in return for underlying shares. Have asked HL if they can confirm that is the case with the Gazprom ADR. I expect it would be the same.

Yup Printed my notes off too and filled under WTF

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reformed nice guy
18 hours ago, supernaut said:

I took this to mean tough luck we wipe our hands of it, have started the process outlined by reformed nice guy ,  waiting to hear back but reformed nice guy's most recent post suggest it will be to no avail if I understand correctly.

Sorry, I didnt make it clear.

If you want to open a normal brokerage account with Gazprombank you need to go to Moscow.

They are letting overseas citizens that hold Gazprom to open an account that is currently only a holding account. It means that you can transfer in your shares, get dividends etc. At this point you wouldnt be able to sell them or buy new ones.

There is speculation that you would be able to sell them in the future. Some are planning to hold for a few years, wait until their normal broker allows the holding of Russian shares then do a transfer back. Alternatively you could be left holding them with no way to access the dividends! Holiday to Russia perhaps?

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1 hour ago, reformed nice guy said:

Sorry, I didnt make it clear.

If you want to open a normal brokerage account with Gazprombank you need to go to Moscow.

They are letting overseas citizens that hold Gazprom to open an account that is currently only a holding account. It means that you can transfer in your shares, get dividends etc. At this point you wouldnt be able to sell them or buy new ones.

There is speculation that you would be able to sell them in the future. Some are planning to hold for a few years, wait until their normal broker allows the holding of Russian shares then do a transfer back. Alternatively you could be left holding them with no way to access the dividends! Holiday to Russia perhaps?

Have you opened the gazprombank account as yet ? I was going to start on the form today.

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supernaut


Bank GPB (JSC) Depository hereby notifies you that a type “C” owner securities account has been opened for you.

Please note that only shares of PJSC Gazprom obtained in a result of the conversion of depositary receipts can be credited to the owner’s type “C” securities account opened in a simplified procedure, other shares can be credited to this account only after passing identification in accordance with the requirements of the Legislation of the Russian Federation on AML/CFT.
Please find  a Notice on newly opened type “C” securities account in the attachment. Instruction for identification, instruction for the procedure for conversion of the DRs are also attached here

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supernaut

Just got the above back ,at work at moment but think it means I can move onto step 2 and contact broker.

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BurntBread

I actually bought Gazprom Neft ADRs, rather than Gazprom, way back in 2020. It seems this one is sitting on the naughty step like Evraz, in that HL still lists it with a non-zero (but sadly reduced) value, the price doesn't update, but it looks like you might still be able to to trade it (or at least sell it), but presumably with a huge spread.

I think the fact it is only 95% owned by the real Gazprom might be giving it a stay of execution,  but it's not clear to me whether that will last. They did pay out a nice 6% divi in March (and then fell by 70% - but you take the rough with the smooth).

Did anyone else rather embarassingly buy this rather than the Gazprom they were aiming for? Why is it not being treated the same way as Gaz, given it's a Russian company listed only on the MOEX and also headquartered in St Pete's?

 

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2 hours ago, BurntBread said:

I actually bought Gazprom Neft ADRs, rather than Gazprom, way back in 2020. It seems this one is sitting on the naughty step like Evraz, in that HL still lists it with a non-zero (but sadly reduced) value, the price doesn't update, but it looks like you might still be able to to trade it (or at least sell it), but presumably with a huge spread.

I think the fact it is only 95% owned by the real Gazprom might be giving it a stay of execution,  but it's not clear to me whether that will last. They did pay out a nice 6% divi in March (and then fell by 70% - but you take the rough with the smooth).

Did anyone else rather embarassingly buy this rather than the Gazprom they were aiming for? Why is it not being treated the same way as Gaz, given it's a Russian company listed only on the MOEX and also headquartered in St Pete's?

 

Gazprom Neft to be delisted after 16/6. Will go same way as Gazprom, after delisting

"Gazprom Neft is terminating its ADR program on June 16, BNY Mellon depositary has announced, and the ADRs must be converted into shares by June 16, 2023." (Interfax)

 

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DoINeedOne


A update from HL

 

PJSC Gazprom – Termination of ADR Facility

 

You hold American Depositary Receipts (ADRs) in PJSC Gazprom. The ADR represents underlying shares in the company and is operated by a Depositary, in this case BNY Mellon. 

 

BNY Mellon has announced that the ADR facility is being terminated. All ADRs still in issue at the close of business on 3 August 2022 will be automatically cancelled. 

 

After 3 August 2022, BNY Mellon will attempt to sell the underlying shares. Due to restrictions introduced by the Central Bank of Russia, BNY Mellon may not be able to sell or receive any value for the underlying shares. Any proceeds that are raised will be returned to holders of ADRs, less any charges including a USD0.05 cancellation fee per ADR. 

 

As trading has been stopped in the ADRs, you’re unable to sell them before the cancellation happens. 

 

We’ll contact you again if we receive any further information on this termination. 

 

Should you have any queries regarding this matter please do not hesitate to contact us

 

Yours sincerely 

 

Andrew Smart

Corporate Actions

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Spiney Norman
49 minutes ago, DoINeedOne said:

A update from HL

 

PJSC Gazprom – Termination of ADR Facility

 

You hold American Depositary Receipts (ADRs) in PJSC Gazprom. The ADR represents underlying shares in the company and is operated by a Depositary, in this case BNY Mellon. 

 

BNY Mellon has announced that the ADR facility is being terminated. All ADRs still in issue at the close of business on 3 August 2022 will be automatically cancelled. 

 

After 3 August 2022, BNY Mellon will attempt to sell the underlying shares. Due to restrictions introduced by the Central Bank of Russia, BNY Mellon may not be able to sell or receive any value for the underlying shares. Any proceeds that are raised will be returned to holders of ADRs, less any charges including a USD0.05 cancellation fee per ADR. 

 

As trading has been stopped in the ADRs, you’re unable to sell them before the cancellation happens. 

 

We’ll contact you again if we receive any further information on this termination. 

 

Should you have any queries regarding this matter please do not hesitate to contact us

 

Yours sincerely 

 

Andrew Smart

Corporate Actions

Is that good or bad?

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2 hours ago, Spiney Norman said:

Is that good or bad?

"After 3 August 2022, BNY Mellon will attempt to sell the underlying shares. Due to restrictions introduced by the Central Bank of Russia, BNY Mellon may not be able to sell or receive any value for the underlying shares"

Not good. Bny may sell them for 5 cent per adr and charge 5 cents for their hard work. Or dispose of the shares for nothing. Of course, the adr still have value as seen by the value of the underlying shares on MOEX. So expect whoever buys the adr to then convert and make a huge profit on them.

It is strange that the HL statement is short and unhelpful. It mentions nothing about HL making an effort to convert the adr. Perhaps, HL are not really bothered, whereas IB are converting adr to MOEX shares. Some IB account holders have already received notices about the adr conversion beginning. The HL statement also says nothing about being able to open a Gazprombank account and receive the underlying shares after conversion. I wonder why not? Why do they not mention any other options and just say that the adr will be cancelled in August and holders may receive little or no money for them?

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CannonFodder

Hmm interesting topic - thank you.

I.m with iweb, was hoping this would sort itself out before june next year but this HL thing caught me offguard with the closer august date.

Assume it will also apply if bny mellon. 

Has anyone had any contact through iweb about this?

I.ll contact them tomorrow.

@TNS - I see you are also iweb and doing the process above.

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8 hours ago, CannonFodder said:

Hmm interesting topic - thank you.

I.m with iweb, was hoping this would sort itself out before june next year but this HL thing caught me offguard with the closer august date.

Assume it will also apply if bny mellon. 

Has anyone had any contact through iweb about this?

I.ll contact them tomorrow.

@TNS - I see you are also iweb and doing the process above.

iweb weren't much help and said to start the process above.

I've emailed the Gazprom Bank forms off yesterday so currently at Stage 1.

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BadAlchemy
13 hours ago, arrow said:

It is strange that the HL statement is short and unhelpful. It mentions nothing about HL making an effort to convert the adr. Perhaps, HL are not really bothered, whereas IB are converting adr to MOEX shares. Some IB account holders have already received notices about the adr conversion beginning. The HL statement also says nothing about being able to open a Gazprombank account and receive the underlying shares after conversion. I wonder why not? Why do they not mention any other options and just say that the adr will be cancelled in August and holders may receive little or no money for them?

Have you, or anyone else here, got any links or info confirming that IB are doing this? And are they doing it for ADR holders within SIPPs and ISAs, or just plain share trading accounts etc?

I have Gazprom ADRs in my HL SIPP. I would prefer they are converted to underlying shares and sit in a Gazprombank account indefinitely, if necessary. I've replied to the latest HL message saying as much and that I'd be moving to whichever broker best protects their customers' investments. I've been looking at moving some investments over to IB anyway. If HL take a lazy shortcut, compared to other brokers, then that's it. Adios, HL!

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BadAlchemy
3 hours ago, TNS said:

iweb weren't much help and said to start the process above.

I've emailed the Gazprom Bank forms off yesterday so currently at Stage 1.

Interesting. Are your Gazprom ADRs with iweb in a SIPP, a stocks and shares ISA, or a standard trading account?

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BadAlchemy

Further update from HL, confirming that they won't be offering conversion but may be able to transfer to another provider who will...

 

"Thanks for getting in touch.

I'm afraid we're unable to convert existing Gazprom ADRs or hold the underlying MOEX, due to the current restrictions in place in regards to Russian securities and exchanges.

We can’t comment on other brokers. However you may be able to transfer the ADRs to another provider who has the facility to provide ADR conversion. To find out more details on whether this would be possible you would have to check with the receiving party.

I hope this has been of assistance. If you have any other questions, please get back to me.

Kind regards"

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