April 10, 2018 / 8:43 AM / 10 months ago

Clearstream says won't facilitate transactions by sanctioned entities

LONDON, April 10 (Reuters) - Clearstream, a major international provider of post-trade services, said on Tuesday it would not facilitate transactions in securities issued by so-called Specially Designated Nationals identified by the latest U.S. sanctions on Russia.

The U.S. Treasury Department’s list of individuals and companies owned or controlled by or acting on behalf of certain countries is collectively known as “Specially Designated Nationals” or “SDNs.”

The latest round of U.S. sanctions released on April 6 sought to punish certain Russian companies and businessmen for Moscow’s alleged interference in U.S. elections.

Clearstream said in a statement on the Russia sanctions that its measures would apply to “all securities issued by Specially Designated Nationals or by entities 50 percent or more controlled by them.”

It identified certain securities, including global depository receipts (GDRs), from the United Rusal Company, the EN Group PLC and auto firm GAZ as those which would be processed for settlement until and including May 6.

“Clearstream Banking is currently investigating whether securities issued by subsidiaries of entities listed in General License 13 are or are not covered by it,” the company added.

For the statement, click: bit.ly/2Hnm5DW

The latest sanctions which have fuelled huge losses on Russian markets, are likely to prove far more damaging than in the past because they apply to existing securities of big companies rather than barring investors from buying new shares or bonds.

Reporting by Sujata Rao; editing by Mike Dolan

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