Update on Russian case law regarding forced conversion: Russian court orders Raiffeisenbank to carry out forced conversion.
In this post we provide a fifth update on recent Russian court decisions.

Case 5: Forced conversion in 2025 as a result of an unjustified rejection of the request for forced conversion in 2022
The fifth case involves mr. Pelevin who owned GDR's and ADR's (depositary receipts) of NLMK (8,600 GDR's) and Surgutneftegas (17,469 ADR's that represented preferred shares) via the broker Citibank NA London. Citibank NA London refused to carry out a request for standard conversion.

Mr. Pelevin therefore applied for forced conversion. Raiffeisenbank rejected this request because the documents did not meet the standards set by Raiffeisenbank to execute the request for forced conversion.

Mr. Pelevin then went to court and lost the initial cases. Eventually the Russian Supreme Court ruled in favour of mr. Pelevin and ordered that Moscow court had to reconsider the case.

On 4th of June 2025 the full judgement from the court of Moscow became available. The court ruled in favour of mr. Pelevin and considered that the execution of forced conversion is still possible in 2025 and that the law did only limit the application for forced conversion to the period set in 2022. The court also rejected the arguments by Raiffeisenbank that it cannot remove the underlying shares from the type-C account of the depositary bank responsible for the depositary receipt program and the argument that Raiffeisenbank had exercised administrative powers and that therefore a stricter regime for statute of limitations applied. As a result Raiffeisenbank was ordered to carry out the forced conversion for the depositary receipts held by mr. Pelevin.

Raiffeisenbank did not agree with the decision and has since appealed the ruling. We expect that this case may again end up with the Russian Supreme Court. Given the previous decision by the Russian Supreme Court we feel that it will be difficult for Raiffeisenbank to get this decision overturned.

All the case materials can be found here: https://kad.arbitr.ru/Card/e3fdc07d-b385-43c8-8663-e63b4c659017

Why is this case interesting?
This case shows that investors can successfully file a claim against Russian custodian banks that have unjustly rejected requests for forced conversion. A successful claim may result in forced conversion to be carried out even in 2025.

How to get a permanent residence permit in Russia to unlock type-C accounts?
Investors that have their funds locked up in Russian type-C accounts are sometimes looking into moving to Russia in order to unlock these funds. Timur Beslangurov from VISTA Immigration made a recent video about this topic. He also assists some members of EAHCISS with the process of obtaining a permanent residence permit.

The video with his contact details can be viewed here (please be advised that there is a minor error in the video; the required level of Russian is B1 instead of B2): https://www.youtube.com/watch?v=yWP07Qk2dX8

Update on Russian case law regarding forced conversion: Russian court orders Raiffeisenbank to carry out forced conversion on Sberbank ADR's.
In this post we provide a sixth update on recent Russian court decisions.

Case 6: Forced conversion in 2025 as a result of an unjustified rejection of the request for forced conversion in 2022
The sixth case involves US citizen mr. Zlatin who owned 20,000 ADR's (depositary receipts) of Sberbank via the broker HilltopSecurities. Hilltop refused to carry out a request for standard conversion.

Mr. Zlatin therefore applied for forced conversion. Raiffeisenbank rejected this request because the documents did not meet the standards set by Raiffeisenbank to execute the request for forced conversion.

Mr. Zlatin then went to court in Moscow. He filed his claim relatively late in April 2024. When the case came to an end at the end of 2024 the first rulings from the Supreme Court started to come back in other cases. The ruling by the Supreme Court in those other cases that stated that Raiffeisenbank had unjustly set unreasonable standards for forced conversion and forced transfer. This probably helped to get the claim rewarded in first instance. As a result Raiffeisenbank was ordered to carry out the forced conversion for the depositary receipts held by mr. Zlatin.

Raiffeisenbank did not agree with the decision and appealed the ruling. The appellate court rejected the appeal. Raiffeisenbank then went to the cassation court. The cassation court also rejected the cassation request today.

Unfortunately we cannot determine from the case materials whether Raiffeisenbank actually executed the forced conversion or simply paid the penalty that was imposed by the court in case of non-execution. We are trying to find out through other channels wether Raiffeisenbank forcefully transferred the Sberbank shares out of the account of JP Morgan (the depositary bank for Sberbank) into the account of mr. Zlatin.

All the case materials can be found here: https://kad.arbitr.ru/Card/13404bba-273d-4fdb-8695-67b34908a4eb

Why is this case interesting?
This case shows that foreign investors from unfriendly countries (mr. Zlatin was from the US) can successfully file a claim against Russian custodian banks that have unjustly rejected requests for forced conversion. It also shows that a fairly long period may pass before filing a claim with the court in Moscow. Investors should keep in mind that the standard statute of limitations in Russia means that claims expire after 3 years. This period starts after the (unlawful) rejection of the application of forced conversion. A successful claim may result in forced conversion to be carried out even in 2025.

Impact of EU sanctions on EU investors
On the 18th of July 2025 the Council of the European Union introduced a transaction ban with many Russian financial institutions, including Sberbank. EAHCISS is concerned about the impact this transaction ban may have on European investors that cannot avoid transactions with these Russian financial institutions due to (automatic) dividend or interest payments.

Today we sent a letter to the Council of the European Union and the responsible department within the European Commission (Directorate-General FISMA) to express our concerns. The full letter can be read via this link: https://drive.google.com/file/d/140ybZCyVZLWnwDPhg32ad09VVpvFMPqT/view?usp=sharing

Letter EAHCISS in response to Exante's policy change
Exante, a Cyprus based EU broker, informed clients that they effectively consider Russian shares to be frozen under sanctions. Clients were given the option to write off these shares completely and receive a tax credit (if applicable) or to continue holding these shares for a daily fee of € 25.

EAHCISS considers the information provided by Exante to be factually incorrect and urged Exante to retract the information sent to its clients. The full response of EAHCISS can be read here: https://drive.google.com/file/d/1oFLBfX8pL44A3sGrBHs-28vXl_nicUja/view?usp=sharing

EAHCISS' guide to distribution of Evraz NTMK shares
On July 22, 2025, the Arbitration Court of the Moscow Region approved the Ministry of Industry and Trade’s request to suspend EVRAZ plc’s corporate rights over NTMK.

As a result, NTMK shares can be allocated among EVRAZ plc shareholders according to their ownership percentage, following Federal Law No 470-FZ. Russian citizens or residents holding EVRAZ plc shares must directly acquire NTMK shares, while non-residents may choose to do so.

The shareholder register as of July 22, 2025, determines eligibility for NTMK share distribution for most transaction in the Russian Federation. Holders outside of Russia would normally need to have acquired the shares before on the 5th of August 2022.

Eligible EVRAZ plc shareholders as of July 22, 2025, can apply for NTMK shares by submitting the required documents by November 24, 2025, as specified by regulation.

EAHCISS created a guidance document to help investors. Investors can also use the paid assistance that is offered by a Russian law firm that EAHCISS has good experiences with. More information on this offer can be found in the guide. The guidance document is attached.

Globaltrans Announced the Payment of the Special Interim Dividend to Eligible Shareholders on 15th of September 2025
Many investors in Globaltrans have been waiting for the dividend payment that distributes the receipts of the recent sale of the Russian subsidiaries.

Globaltrans Investment PLC has now announced that the payment of the special interim dividend to the eligible registered shareholders (including the Depositary Bank) has been dispatched (https://www.globaltrans.com/investors/news/detail/2572).

The distribution of the special interim dividend was approved by the decision of the Board of Directors of the Company on 18 April 2025 (https://www.globaltrans.com/investors/news/detail/2557).

In accordance with the Depositary Agreement between the Company and the Depositary Bank, the dividend payment to holders of the Company’s Global Depositary Receipts will be arranged by the Depositary Bank.

Join the EAHCISS Open Mic event
This Saturday at noon (12:00 CEST) we will host an EAHCISS Open Mic event. The goal is to facilitate conversion between like minded investors. Topics that may be touched are geopolitics, investments, and the further development of EAHCISS.

This session will be in English. We consider hosting monthly social Open Mic events in English and German if there is interest for these events.

The Open Mic event will be hosted via the Discord group. Feel free to join us this Saturday via: https://discord.gg/mdaVZY92?event=1418275923144478731

Join the EAHCISS Open Mic event (in German)
Sunday the 5th of October 2025 at 10:30 CEST we will host an EAHCISS Open Mic event in German. The goal is to facilitate conversion between like minded investors. Topics that may be touched are geopolitics, investments, and the further development of EAHCISS.

This session will be in German. We consider hosting monthly social Open Mic events in English and German if there is interest for these events.

The Open Mic event will be hosted via the Discord group. Feel free to join us on the 5th of October via: https://discord.gg/mdaVZY92?event=1419256846547419287

Webinar on claiming Evraz NTMK shares
On the 27th of September at 10:00 UK time (11:00 CEST; 12:00 MSK) EAHCISS will host a webinar on the topic of claiming Evraz NTMK shares (see attachment for invitation). The webinar is free of charge and can be joined via this link: https://meet.google.com/jqp-norp-iua?hs=122&authuser=1

Add to Google calendar.

I want those shares! How to apply for Evraz NTMK shares as a shareholder in Evraz Plc.
In this webinar we aim to inform investors in Evraz about the process of applying for direct ownership in Evraz NTMK.

Topics that will be covert are the opening of a brokerage account with Cifra broker, the basic conditions for claiming Evraz NTMK shares and how to go through the process if you either were issued Evraz share certificates before August 5th 2022 (lucky you!) or if you held your shares via a broker after the 4th of August 2022 (this means the process is a bit more complicated).

Presentation on claiming Evraz NTMK shares
Thank you all very much for joining our webinar on claiming Evraz NTMK shares today! We'll aim to make the video available on our YouTube channel. We have added the presentation from the webinar as an attachment for your reference.

Video of Webinar on claiming Evraz NTMK shares
Thank you all very much for joining yesterday's webinar on claiming Evraz NTMK shares! We have now published the video on YouTube (https://youtu.be/G5EAAPb1GyI).

I want those shares! How to apply for Evraz NTMK shares as a shareholder in Evraz Plc.
In this webinar, hosted on the 27th of September 2025, we aim to inform investors in Evraz about the process of applying for direct ownership in Evraz NTMK.

Topics that are covert are the opening of a brokerage account with Cifra broker, the basic conditions for claiming Evraz NTMK shares and how to go through the process if you either were issued Evraz share certificates before August 5th 2022 (lucky you!) or if you held your shares via a broker after the 4th of August 2022 (this means the process is a bit more complicated).

We have added the presentation from the webinar as an attachment for your reference.

YouTube link to video of webinar https://youtu.be/G5EAAPb1GyI

Redomiciliation of Ozon to the Russian Federation - update
Today was the last day of trading of Ozon American Depositary Shares (ADS) on the AIX (Astana International Exchange). Ozon IPJSC (formerly Ozon Holdings PLC) announced on the 25th of September that the Company is now registered in the special administrative district in Kaliningrad region, Oktyabrsky Island, Russia as Ozon International Public Joint-Stock Company.

Trading in Ozon IPJSC shares is expected to resume by the end of 2025. The Moscow Exchange will notify investors in advance.

Ozon has released a FAQ that guides investors through the impact of redomiciliation. The FAQ is attached to this message for your reference. Holders of depositary shares will be able to apply for forced conversion in order to receive ordinary shares in Ozon IPJSC. The process and deadlines for forced conversion will be communicated in due course.

Evraz NTMK share distribution - Video Magenta
Magenta Legal has now also published a video on the share distribution of Evraz NTMK shares that Evraz Plc sharholders can apply for. The video focuses on slightly different aspects than the video published by EAHCISS so it may also be an interesting video for those that joined or watched the webinar hosted by EAHCISS.

https://youtu.be/dzRQAKEX-zk

Liquidation of SolidCore (Polymetal / AUCOY) depositary receipts by BNY
BNY has put out a notice in which they inform holders of depositary receipts of Solidcore (formerly known as Polymetal; AUCOY) that they have sold the shares underlying the depositary receipts. BNY will process a cash distribution of $ 4.09 per depositary receipt.

The notice can be found attached to this message and via this link: https://www.adrbny.com/content/dam/adr/documents/corporate-actions-dr/files/AD2000242.pdf

Just for those wondering: it was an OTC-trade on the 25th of September 2025 at a discounted price compared to AIX trading.

Update on Russian case law regarding trying to force BNY and Raiffeisenbank to convert ADRs through the Russian courts
In this post we provide a sixth update on recent Russian court decisions.

Case 6: If you did not apply for 'Forced Conversion' in 2022 you can't ask a Russian court to force Raiffeisenbank to do so now
This case involves Ms Staroseltseva that bought depositary receipts of Polyus in August 2023. She was allowed to do so since Polyus was granted an extension of their depositary receipts program beyond April 2022 by the Russian government committee.

However, as the purchased the depositary receipts beyond the deadline for forced conversion in 2022, she could not participate in the forced conversion.

She therefore decided to start legal proceedings against BNY and Raiffeisenbank Russia in the Russian courts. She was trying to get a Russian court order that would force Raiffeisenbank Russia to take the underlying shares out of the depositary account for the Polyus depositary receipts program and to transfer these ordinary shares to her own account.

The Moscow arbitration court and the appellate court interestingly did not really go into the case against BNY, but only looked at the arguments of Raiffeisenbank Russia as defendant. It would have been interesting if the courts would indicate whether the Russian courts are competent to consider cases against BNY.

The courts determined that the legislator had limited the period for forced conversion on purpose and that it would be inappropriate for the Russian courts to establish another mechanism for forced conversion outside of the Russian law that specifically covered forced conversion.

The courts therefore rejected the case. All the case materials can be found here: https://kad.arbitr.ru/Card/2be0d8e0-36d4-4b39-9077-090a107d0c21

Why is this case interesting?
This case shows that it is difficult for holders of depositary receipts to try and get their depositary receipts converted through the Russian courts. The Russian courts seem to take the approach that investors had the opportunity to apply for forced conversion via the established mechanism in the Russian legislation.

We do not find the argumentation of the Russian court convincing as the Russian courts have allowed for 'forced transfers of accounting rights' to take place outside of the established procedure for forced transfer.

To us, a more convincing argument seems that the competence of the Russian courts is more firmly established in Russian law for cases involving Russian ordinary shares that are securities that are issued under Russian law (even if they are held through western brokers). Whereas the competence for the Russian courts in cases regarding depositary receipts (which are normally securities that are issued under the law of the United States) can probably only be established on the basis of article 248.1 of the Russian Arbitration Procedural Code, which was introduced to give the Russian courts competence in cases where foreign sanctions affect Russian entities.

Given this case we do not share the analysis of GFLO Consultancy (https://gflolaw.com/en/recover-blocked-russian-shares-adrs/) who seem to advocate pursuing cases against western brokers and depositary banks in the Russian courts in order to get a Russian court order that would force the Russian custodian bank to transfer the underlying shares of the depositary program to the account of the investor pursuing conversion of the depositary receipts.

Forced conversion depositary shares of Ozon
Yesterday was the first day of trading of Ozon on the Moscow stock exchange after the process of redomiciliation from Cyprus to the Russian Federation was completed.

The 11th of November 2025 was also the day that Reestr-Proton, the registrar for Ozon, published the procedure for the forced conversion of depositary shares into local ordinary shares. This information can be found here: https://reestr-proton.ru/for_shareholders

EAHCISS is contemplating hosting a webinar to explain the process of forced conversion of Ozon depositary shares.

It is well possible that shareholders that do not apply for forced conversion may not have the chance to obtain ordinary shares of Ozon afterwards and that BNY will liquidate the Ozon shares that underly the depositary shares if they see a possibility to do so. Unfortunately voluntary conversion of depositary shares of Ozon has, in practice, not been possible due to a global lock that was placed on the depositary shares by the DTC in October 2024, which made it impossible to surrender depositary shares to BNY for conversion.

Explainer video by Magenta Legal on Forced Conversion of Ozon Depositary Shares
From the 1st of December 2025 "Reestr Proton", the new Russian registrar of Ozon, will start accepting applications for the forced conversion of depositary shares of Ozon. Ozon recently underwent redomiciliation from Cyprus to Russia. Applications for forced conversion can be submitted until the 31st of March 2026.

It is likely that this may be the only chance for holders of depositary shares to convert their depositary shares of Ozon into ordinary shares. If one does not participate in the current procedure the ordinary shares underlying the depositary receipts may well be liquidated for a discount once the depositary bank BNY may be able to do so.

Magenta Legal recently published a video in which they explain the process. EAHCISS may organise a webinar on this topic too to help investors navigate the fairly complex procedure of forced conversion.

The video by Magenta Legal can be viewed via YouTube:
https://youtu.be/Xir-ZeLMeOM