Restrictions oa dccess to Eat

copitol morkets
lor
Russion
stote-owned
finonciol
institutions
Torgeted medsures in the oreos of access to copitol
morkets, defence, dual use goods
ond sensitive
technologies
Russian companies and financial institutions are heavily dependent on EU
capital markets:
.
Between 2004 and 2012 a total of USD 4g.4bn was raised
through lPOs in the EU by companies incorporated in Russia. Out
of those, USD 15.4bn was issued by state-owned financial
institutions.
o
ln 2013, 47% ol the bonds issued by Russi*n public
financial
institutions were issued in the EU's financial markets (7.5bn
out
of a totat of 15.8bn).
Restricting access to capital markets for Russian state-owned financial
institutions would increase their cost of raising funds and constrairt.their
ability to finance the Russian economy, unless the Russian public
authorities provide
them with substitute financing. lt would also foster a
climate of market uncertainty that is likely to affect the business
environment in Russia and accelerate capital outflows.
With regard to the scope ofthe restriction, the measure would consist in
prohibiting
any EU persons
from investing in debt, equity and similar
financial instruments with a maturity higher than 90 days, issued by
state-owned Russian financial institutions after the entry into force of the
restrictive measure anywhere in the world. lt would also be prohibited
to
provide
investment services and any service in relation to the admlssion
to trading on a regulated market or trading on a multilateral trading
facility with regard to the same financial instruments.
With regard to the entities targeted, the measure would taret Russian
state-owned credit institutions (banks
with over 50%
public
ownership),
as well as development finance institutions.
The prohibition
would extend both to
primary
markets (flrst issue) and
secondary (subsequent
trading) market of the newly issued Russian
securities. Existing shares and bonds would not be covered. Transactions
other than those mentioned before with the targeted entities would
remain possible,
u