Russian citizenship or residence permit in Russia (VNZh) can allow shareholders to use shares and dividends kept at the special type “C” accounts
Many of our clients ask us how citizens of the “unfriendly” countries (all EU countries, UK, US, etc.) can use their assets received to the special type “C” (or “S” – in Russian) accounts after converting depository receipts (DRs) of Gazprom, Tatneft, Lukoil, etc. into shares and/or receiving dividends on the type “C” accounts by these shareholders.
Please be informed that such an option exists for the citizens of the “unfriendly” countries, who also have either the Russian citizenship or the residence permit in Russia (“VNZh” – in Russian), as such persons are considered by the Russian legislation as the currency residents of Russia. Therefore, certain special limitations for “unfriendly” persons – including de-facto inability to utilize assets kept at the type “C” accounts – does not apply to such persons due to their residency status.
MAGENTA Legal has vast experience in working with the type “C” accounts and cooperation with the clients’ banks in Russia. If you would like to explore this option in more detail, please consult our lawyers to find a suitable solution.
The information provided in this message is for general guidance only and does not constitute legal or financial advice. MAGENTA Legal accepts no liability for any actions (or inactions) based on the information provided. Please consult with your legal and/or financial advisor.
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