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ARTICLE · 25 NOVEMBER 2008

Russian Capital Markets Introduce A New Financial Instrument

In 2007, the Russian security market brought in a new financial instrument, Russian Depositary Receipts (RDRs), intended to attract investment.

RussiaStrategy
Roman Belenkov
Roman Belenkov

In 2007, the Russian security market brought in a new financial instrument, Russian Depositary Receipts (RDRs), intended to attract investment. The idea of RDRs was announced in 1998, when the Federal Commission on Securities Market (predecessor of the Federal Financial Market Service of Russia) jointly with the Russian Central Bank and the Ministry of Finance, formed a working group for elaboration of a instrument similar to the American depositary receipt. However due to some instability in the political situation and a prolonged legislation reforming process, the project was postponed until 2004. Since then, the Russian legislator has worked on the draft law "On Amendments to the Federal Law "On the Securities Market", which was enacted and came into force as late as 2007 and set a legal basis for RDRs as a new type of registered security of no par value, representing the title over a certain number of

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