Kazakhstan’s depository recommends brokers withdraw Russian securities

The Central Securities Depository (CSD) of the Republic of Kazakhstan has advised brokers and managing companies to withdraw Russian securities it currently holds. These recommendations come in response to U.S. sanctions against the National Settlement Depository (NSD) of Russia, as reported by the RBC news agency and confirmed by the CSD’s press service.

According to the depository, the securities in question are identified with the RU code under the ISIN classification. These securities are ultimately held by the NSD, with the CSD acting as their nominee holder.

«In a letter to clients, the Central Depository has cautioned clients about potential restrictions and challenges in executing orders related to securities bearing the RU code under ISIN classification after a specified date,» the depository stated.

The deadline for withdrawing these securities is August 10, nearly coinciding with the expiration of the general license issued by the U.S. Department of the Treasury to the NSD, which is valid until August 13. This timeframe allows brokers and managing companies to submit orders for the withdrawal of Russian securities held by the NSD from their nominee holder, the CSD. The CSD has set a deadline three days before August 13, to ensure sufficient time for accepting and processing client instructions.

The financial organization emphasized that it will carefully review each client’s withdrawal order to evaluate risks and potential consequences for the CSD. Earlier in July, Russian Frank Media reported that Russian brokers had transferred $12 billion worth of securities to Kazakhstan. However, in response to an inquiry by Kursiv.media, the CSD confirmed that only 1.4% of this amount, equivalent to $170 million in value, consists of securities transferred.