MOSCOW (Reuters) - Russia's largest liquefied natural gas (LNG) producer Novatek said on Tuesday it was delisting its depositary receipts from the London Stock Exchange, where its securities have effectively been suspended from trading for almost a year.
Listing of securities on Western stock markets used to be a matter of prestige for Russian companies, facilitating their access to Western money and improving their investor base.
However, President Vladimir Putin signed a bill in April last year requiring Russian companies to delist their depositary receipts to reduce the influence foreign countries could have over them, except if they were granted permission to remain listed.
Initially, Russia in May gave 15 companies, including metals giant Nornickel and Novatek, approval to remain listed on foreign exchanges.
The London Stock Exchange suspended trading in the depositary receipts -- which represent shares in a foreign company -- of Russian companies in early March after Moscow sent thousands of troops into Ukraine for what it called a "special military operation".
"Novatek... in connection with the actual suspension of trading of the Company's depositary receipts from 3 March 2022, hereby notifies of its request to the UK Financial Conduct Authority (FCA) to cancel the listing of the Company's global depositary receipts," Novatek said on Tuesday.
It said that March 7, would be the last day of listing for its global depositary receipts (GDR) on the London Stock Exchange.
Following the LSE listing cancellation, the company will continue listing its shares on the regulated market of the Moscow Exchange, while the GDR program remains in force and is operational, Novatek said.
GDR holders may exercise their rights under the securities subject to applicable Russian law.