DB - Deutsche Bank tells clients full access to their Russian shares no longer guaranteed - report

2023-06-26 08:40:18 ET

Deutsche Bank ( NYSE: DB ) was said to have informed its clients that it can no longer guarantee full access to their Russian stocks as the country's war in Ukraine made it hard for global investors to recover stakes.

In a June 9 note, DB had unveiled a deficit in the shares that back the depository receipts (DRs) the bank had issued before Ukraine was invaded, the article said, Reuters reported Monday, adding that the shares have been held in Russia by another lender.

Moscow allowed investors to convert some of the DRs into local stock, but that took hold without Deutsche Bank's ( DB ) overseeing the process and it was unable to reconcile the shares with the DRs. DRs are negotiable certificates issued by a bank representing shares in a foreign company traded on a local stock exchange.

Shares that have been impacted include national airline Aeroflot ( OTC:AERZY ), mining and steel firm Mechel PAO ( MTL.P ) and Novolipetsk Steel ( OTC:NISQY ), Reuters noted , citing sources familiar with the matter.

As part of its plans to exit all Russia business, DB is now letting investors swap DRs for shares. As war broke out in Ukraine in March, Germany's largest lender said it's "winding down" business in Russia.

More on Deutsche Bank and Russia:

• Deutsche Bank de-risking technology operations in Russia (update)

• Putin vs. Wagner: What does chaos in Russia mean for markets?

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