Nornickel is first Russian firm to get OK to keep listing abroad

　　div classBodysc17zpet90 cdBBJodivpReuters – Metals giant Nornickel has become the first Russian company to be granted permission by a government commission to keep its listing abroad – for one year for now.p

　　pNornickel, the worlds largest producer of palladium and refined nickel, and other large Russiaregistered firms have sought government approval to keep their depositary receipts traded on foreign bourses.pdivdivdiv classBodysc17zpet90 cdBBJodiv

　　pThe approval has been needed since President Vladimir Putin in April signed a bill requiring Russian companies to delist their depositary receipts abroad in a bid to reduce foreigners control over these firms.p

　　pNornickel said on Thursday a government commission had approved its request to maintain the circulation of its American Depositary Receipts ADRs outside Russia until April 28, 2023.p

　　pThe permission would give the metals producer time to assess available opportunities and steps to support its longterm investment attractiveness, it added.p

　　p“It is important that a precedent occurred for a Russian company to be allowed to continue trading depositary receipts DR abroad. In other words, it is likely that other companies will be able to retain the DR programme,” analysts at BCS said in a note.p

　　pMaintaining a foreign listing could indirectly mean that the company will continue to adhere to best corporate governance and disclosure practices. The decision is also positive for the companys interaction with Western investors in the long term, BCS added.p

　　pRussian steel producers NLMK and MMK, gas producer Novatek, and firms like Sistema, Magnit and En have said that they have also applied for similar permission. The result of their applications is yet to be disclosed.p

　　pA request by Russian gas giant Gazprom was rejected and the company expects delisting of its depositary receipts on May 31.p

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　　pp Reporting by Reuters Editing by Mark Potter and Bernadette Baump

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