PRESIDENTIAL DECREE OF THE RUSSIAN FEDERATION

of March 19, 2024 No. 198

About the additional temporary measures of economic nature connected with obligation fulfillment on some securities

Due to the unfriendly and contradicting international law actions of the United States of America and the foreign states and the international organizations which adjoined them directed to introduction of rationing arrangements concerning citizens of the Russian Federation and the Russian legal entities for the purpose of protection of national interests of the Russian Federation, ensuring its financial stability and according to the Federal Laws of December 30, 2006 No. 281-FZ "About special economic measures and enforcement powers", of December 28, 2010 No. 390-FZ "About safety" and of June 4, 2018 No. 127-FZ "About corrective actions (counteraction) on unfriendly actions of the United States of America and other foreign states" I decide:

1. Determine that if payments for securities are enlisted about day of entry into force of this Decree into the account of type "C" of the foreign nominee holder or foreign payment agent opened according to the Presidential decree of the Russian Federation of March 5, 2022 No. 95 "About temporary procedure for obligation fulfillment before some foreign creditors", the owner of securities or person performing the rights on securities which are residents, or the nonresidents meeting at the same time the requirements of subitems "an" and "b" of Item 12 of the called Decree, or the organizations provided by the subitem "v" of Item 1 of the Presidential decree of the Russian Federation of October 15, 2022 No. 738 "About application of some presidential decrees of the Russian Federation" (further - the owner of securities) having the right to receive the payments for securities which are due to them at the expense of the means which are on the account of type "C", according to the procedure established by this Decree.

2. Are understood as securities acquired till March 1, 2022 or after March 1, 2022 (provided that since March 1, 2022 persons performing the rights on securities were not foreign creditors, the stipulated in Item 1 Presidential decree of the Russian Federation of March 5, 2022 No. 95 "About temporary procedure for obligation fulfillment before some foreign creditors", except for the foreign creditors meeting at the same time the requirements of subitems "an" and "b" of Item 12 of the called Decree or being the organizations provided by the subitem "v" of Item 1 of the Presidential decree of the Russian Federation of October 15, 2022 No. 738 "About application of some presidential decrees of the Russian Federation"):

a) shares of the Russian joint stock company, the federal loan bond, the bond of the Russian issuer, centralized accounting of the rights to which (which obligatory centralized storage) is performed by the Russian depositary;

b) the securities of foreign issuers certifying the rights concerning shares of the Russian joint stock company;

c) eurobonds with which obligations of the Russian legal entity are connected (further - the debtor on eurobonds).

3. The owner of securities has the right to send to the Russian depositary or the debtor on eurobonds which transfered means to account type "C" of the foreign nominee holder or the foreign payment agent, the statement for implementation of payments for securities with indication of details of the bank account opened in rubles. The documents declared by the owner of securities confirmatory requirements are enclosed to the application.

The list of data which shall contain in the statement and the list of supporting documents are determined by the solution of the Board of directors of the Central bank of the Russian Federation. The statement and supporting documents go no later than 60 days from the date of official publication of the solution of the Board of directors of the Central bank of the Russian Federation.

4. The Russian depositary or the debtor on eurobonds no later than 31 days from the date of the expiration, the stipulated in Item 3 presents of the Decree, makes the decision on implementation of payments for securities or on refusal in implementation of such payments. The specified decision is made based on check of justification of the securities of requirements declared by the owner.

5. Payments for securities are not performed:

a) if the amount of means specified in statements for implementation of payments for securities exceeds the amount of means intended for payments for the corresponding securities and transferred by the Russian depositary or the debtor on eurobonds into accounts of type "C" of foreign nominee holders, foreign payment agents;

b) in the presence at the Russian depositary or the debtor on eurobonds of reasonable doubts in completeness and (or) reliability of the submitted documents (data).

6. The Russian depositary or the debtor on eurobonds no later than two working days from the date of decision making about implementation of payments for securities sends to the foreign nominee holder or the foreign payment agent the notification on carrying out settlings with the owner of securities at the expense of the means which are on the account of type "C" of the foreign nominee holder or foreign payment agent.

7. In case of non receipt within 10 days from the date of the direction of the notification, stipulated in Item 6 these Decrees, from the foreign nominee holder or the foreign payment agent of motivated objection:

a) the Russian depositary or the debtor on eurobonds sends to credit institution in which the account of type "C" of the foreign nominee holder or foreign payment agent, the remittance order of means is opened for the owner of securities with indication of date, number of the order based on which these means were enlisted in this respect, and details of the bank account of the owner of securities opened in rubles;

b) the credit institution which is the Russian depositary and (or) the debtor on eurobonds shall charge funds off account of type "C" of the foreign nominee holder or the foreign payment agent for the purpose of their transfer into the bank account of the owner of securities.

8. The credit institution to which according to the subitem "an" of Item 7 of this Decree the order is sent shall charge funds off account of type "C" of the foreign nominee holder or the foreign payment agent for the purpose of their transfer into the bank account of the owner of securities.

9. Establish the following operations procedure of the central depositary as a result of which its obligations on return of balance from the bank account (including accounts of type "C") the international settlement and clearing organization are recognized performed properly:

a) the central depositary within five working days from the date of write-off according to the subitem "b" of Item 7 of this Decree of means performs replacement of the obligations expressed in rubles by the obligations expressed in foreign currency proceeding from their size calculated on the official rate of the Central bank of the Russian Federation established for the day preceding day of replacement of obligations and reflects the obligations expressed in foreign currency in intra bank accounts on accounting of obligations to the international settlement and clearing organization. At the same time the amount of the obligations expressed in foreign currency shall not exceed remaining balance of foreign currency on the account of the central depositary opened in the international settlement and clearing organization;

b) the central depositary no later than the day following behind day of replacement according to the subitem "an" of this Item of obligations sends to the international settlement and clearing organization in which the account of the central depositary, the notification on replacement of obligations and on obligation fulfillment before the international settlement and clearing organization by transfer of means by it in foreign currency from the account of the central depositary opened in the international settlement and clearing organization, with indication of the size of such means and the applied official rate of the Central bank of the Russian Federation, and also the order about write-off of funds from this account of the central depositary is opened. The notification and the order are considered received by the international settlement and clearing organization next day after day of their direction by the central depositary;

c) the central depositary for the fourth working day from the date of, the direction following behind day according to the subitem "b" of this Item of the notification and the order, stops accounting of the obligations expressed in foreign currency to the international settlement and clearing organization on the intra bank accounts provided by the subitem "an" of this Item if the central depositary from the international settlement and clearing organization does not receive motivated objection in the part concerning the size of the means and the official rate of the Central bank of the Russian Federation specified in the notification.

10. The central depositary after the termination based on Item 9 of this Decree of obligations uses the means received as a result of discharge, according to the procedure, No. 665 established by Items 12 and 13 of the Presidential decree of the Russian Federation of September 9, 2023 "About temporary procedure for execution before residents and foreign creditors of the state debt obligations of the Russian Federation expressed in government securities which nominal value is specified in foreign currency, and other obligations on foreign securities".

11. Establish the following temporary procedure for execution by the debtor on eurobonds of the obligations to the holder of eurobonds which arose after day of entry into force of this Decree:

a) the holder of eurobonds who did not receive payments for the eurobonds having the right within 60 days after date of the next payment on eurobonds to direct to the debtor on eurobonds the application for implementation of payments for eurobonds with indication of details of the bank account opened in rubles. The documents declared by the holder of eurobonds confirmatory requirements are enclosed to the application. The list of data which shall contain in the statement and the list of supporting documents are determined by the solution of the Board of directors of the Central bank of the Russian Federation;

b) the debtor on eurobonds no later than 10 days from the date of the expiration established by the subitem "an" of this Item makes the decision on implementation of payments for eurobonds or on refusal in implementation of such payments. The specified decision is made based on the justification of the eurobonds of requirements declared by the holder performed with attraction Russian depositary. Requirements to activities of the Russian depositary when conducting check are established by the solution of the Board of directors of the Central bank of the Russian Federation;

c) payments for eurobonds are not performed:

if the amount of means specified in statements for implementation of payments for eurobonds exceeds amount of unexecuted obligations of the debtor on eurobonds on the corresponding payment;

in the presence at the Russian depositary or the debtor on eurobonds of reasonable doubts in completeness and (or) reliability of the submitted documents (data);

in case of proper execution by the debtor on eurobonds of obligations on eurobonds to the holder of eurobonds;

d) the debtor on eurobonds performs payments for eurobonds in rubles in the amount which is equivalent to the cost of the obligations expressed in foreign currency and is calculated on the official rate of the Central bank of the Russian Federation established on the date of the corresponding payment taking into account requirements of Item 8 of the Presidential decree of the Russian Federation of March 5, 2022 No. 95 "About temporary procedure for obligation fulfillment before some foreign creditors";

e) after implementation according to the subitem "g" of this Item of payments the debtor on eurobonds transfers to account type "C" of the foreign nominee holder or the foreign payment agent the remained means according to the procedure, No. 95 provided by the subitem "v" of Item 6 of the Presidential decree of the Russian Federation of March 5, 2022 "About temporary procedure for obligation fulfillment before some foreign creditors".

12. The holder of eurobonds is understood as the owner of eurobonds or person performing the rights on eurobonds which rights to eurobonds are considered by the foreign organizations having the right according to their personal law to perform accounting and transition of the rights to securities and are not considered by the Russian depositaries.

13. The temporary procedure, stipulated in Item 11 these Decrees, is not applied by the debtor on eurobonds who fulfilled obligations to the holder of eurobonds by other methods provided by presidential decrees of the Russian Federation.

14. To the board of directors of the Central bank of the Russian Federation to make the decisions necessary for implementation of this Decree.

15. The solutions of the Board of directors of the Central bank of the Russian Federation provided by this Decree are subject to official publication according to article 7 of the Federal Law of July 10, 2002 No. 86-FZ "About the Central bank the Russian Federation (Bank of Russia)".

16. Grant to the Central bank of the Russian Federation the right to make official explanations concerning application of this Decree.

17. This Decree becomes effective from the date of its official publication.

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