https://im.kommersant.ru/Issues.photo/DAILY/2020/131M/KMO_176022_00031_1_t218_194739.jpg

Moscow exchange intends from mid-August to start trading us shares. The question remains, how to prevent to these trades citizens residing in Crimea, not to fall under US sanctions. The exchange believes that this case the brokers, as they enter into contracts with customers, the same in turn receive from the exchange an official document with the reasons for rejection.The Moscow stock exchange on August 17 will start trading us stocks (see “Kommersant” of 9 July). As reported by “Kommersant” a source in the large broker still has not resolved the question of the admission to trading of such citizens residing in Crimea, as their participation in trade us securities can lead to a potential risk of sanctions. According to him, lawyers of the stock exchange has already held a number of meetings with companies and offer to deny such customers of the broker. “But it is unclear on what basis we are to refuse: the official paper exchange does not give us,” he says.The existence of the problem confirmed the “Kommersant” sources in the other two major brokers. One of them expressed hope that the Moscow exchange will work out a solution. Another source of “Kommersant” reported that they had made requests to the Bank of Russia, but received no response. Kommersant’s source close to the exchange, also confirmed that compliance as the exchange and Central Depository is considering the issue, but until a clear solution no.The problem of the admission of citizens residing on the territory of Crimea, to trading us securities discussed last fall in connection with the St. Petersburg exchange, which traded foreign stocks in Russia. As said a top Manager of one of the brokers, now Saint Petersburg stock exchange does not permit trading to citizens residing in the Crimea, but the refusal comes not from the exchange itself, but from the parent of the broker through which exchange creates and displays stocks with the U.S. market. The investor who wishes to trade us securities, is simplified identification, which, in particular, gives information on his whereabouts. “In that case, the failure comes from the foreign company operating under American law”,— explained the interlocutor of Kommersant. The second source on the stock market confirmed that the refusal of admission at the St. Petersburg stock exchange is carried out through a foreign entity. Saint Petersburg stock exchange declined to comment.The severity of the consequences if the risk of violation of the sanction restrictions it is difficult to overestimate: it can be blocked the assets of individuals under the control of the United States and prohibited transactions with legal entities and citizens of the United States, says the head of the international practice at Vegas Lex Natalia Abasco. Moscow exchange can really get under the sanctions, but this risk is not necessarily implemented as, for example, in the case of Promsvyaz��the ANC, which serves the bulk of the sanctions companies, and he is under sanctions not covered, says the special adviser of the bar Association Pen & Paper Sergey Glandin. The issue of sanctions is the Russian professional participants in 2014, and all the while there is a debate about reading quite a blurred American law, says Deputy General Director of “Aton” Maxim Kuzyakin. “Aton” is one of four Russian companies, which have the status of QI (Qualified Intermediary) and may apply to investors to reduce income tax in the American tax authorities. According to Mr. kuzjakina, the consensus view is that the broker should know his customer always is first of all necessary to protect the interests of the investors and eliminate the risk of freezing their assets is an international Depository and clearing institutions. For this reason, he says, all the major players have already made the decision about his attitude to this risk.Polina Smorodskaya