On 16 December 2022, the Minister of Finance of Luxembourg Arsene Joseph Jacoby signed a general authorization according to which “the Minister responsible for Finance authorizes”:
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the release of certain frozen funds or economic resources belonging to the National Settlement Depository (the “NSD”), the largest securities depository in Russia,
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the making available of certain funds or economic resources to the NSD,
on the condition that these funds and economic resources are necessary for the termination by 7 January 2023 of operations, contracts or other agreements concluded with, or otherwise involving, the NSD before 3 June 2022.
This general authorization grants the NSD with the right to trade and export.
This is the first time since the imposition of EU sanctions against the NSD (i.e. 3 June 2022), when such a general authorization was granted.
In accordance with the general authorization, the NSD shall provide the proof of the termination of operations, contracts or other agreements concluded with, or otherwise involving, the NSD within 10 working days starting from the termination date and at the latest within 5 working days starting from 7 January 2023.
Pursuant to Article 10 of the Law of 19 December 2020, violation of the terms established in the general license shall be punished by the imprisonment from 8 days to 5 years and (or) a fine from EUR 12 500 to EUR 5 000 000. Where the offence has resulted in substantial financial gain, the fine may be increased to four times the amount of the offence.
Nadmitov, Ivanov & Partners law firm advises on dealing with the competent authorities in Belgium and Luxembourg in relation to obtaining authorisation from the competent authority to unblock securities, ETFs, dividends and coupon payments in Euroclear and ClearStream.
Email: info@nplaw.ru
Tel: +7 (495) 649-87-12