WHAT'S NEW ----- 
About The Portal To Russia
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Email Dr. Palms
Sovetnik Pravitelstva CWA, Tovarichestvo Palmsa, Inc.
Investment Bankers. Washington, United States of America.
Russian companies may now begin to issue American Depository Receipts in the U.S. Capital Markets. An ADR is a dollar-denominated security traded on U.S. stock exchanges and settled in the same way as other U.S. Securities. The ADR represents the underlying ruble-denominated stock of the Russian company issuing the ADR's. Such shares are held on deposit in Western institutions. An ADR can be listed or unlisted on the Exchanges of the U.S. Shares already issued by the Russian issuer do not have to be registered with the S.E.C. SEC registration is required for a Stock Exchange listing or for ADR's which are offered in connection with new securities issues.
The Sept 7 decisions allows Russian companies to submit applications to the SEC for approval to issue ADR's on an individual basis. Prior to Sept 7 the SEC did not accept filings form Russian corporations issuing stock LUKoil, Chernogorneft, Avtovazbank and GUM will be interested in this new opportunity.
ADR's avoid the problems of the Russian securities market since they are traded and settled in dollars. They are cleared through a recognized clearing system and are registered under U.S. regulations. Russian problems of share registration, clearing and settlement of trades are avoided.
Russian companies will now be able to reach institutional investors in the U.S. that until now were prohibited from buying Russian securities.. Now they may buy ADR's. This as an important capital source for Russia. Even if Russia attracts only 2% of the money managed by U.S. institutional investors they would receive $40.000,000,000,00. Russia would also gain a broader investor base and more liquidity for their shares.
It will be really important progress when the first Russian company meets the Generally Accepted Accounting Practices and SEC filing requirements necessary to raise fresh capital in the United States.
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