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Considering RA just donated £billions I assume the below inc. debt and BAU services. Just hope the government realsied that there is alot of pensioners I'm evr and that letting evr operate is in everyone's interest.
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What types of licences are available?
OFSI can only issue a licence where there are legal grounds to do so. You need to assess which ground is relevant to your application, referencing the relevant regulations. The grounds listed are for regimes operating under the Sanctions and Anti Money Laundering Act (the Sanctions Act).
Licences can generally be obtained where the proposed transactions are for:
covering expenses such as food, rent and medicines (referred to as basic needs)
reasonable professional legal fees or reasonable expenses associated with the provision of legal services
prior obligations (if the obligation/contract started before the sanction was imposed)
covering the payment of fees/service charges for routine holding or maintenance of frozen funds or economic resources
pre-existing judicial decisions
extraordinary expenses, where considered appropriate
extraordinary situations, where considered appropriate (only for non-UN listed persons)
humanitarian assistance
diplomatic missions
I think if a ceasefire happens soon then RA will levergaed his connections between russian / Ukraine / evraz to rebuild Ukraine. Maybe even give half his stake to Ukraine (you may think that's crazy but look at what he did with Chelsea). I don't get why do many people give so much hate on RA when he's one of only a few oligarchs that are trying to help the situation and donating money to charity.
Only issue is that Putin is an evil person and might not want to back down.
Now that we see special considerations can be offered (e.g. Chelsea sale), I would think evr can negotiate a deal with the UK govt also on possible share buybacks of minority non-russian shareholders at a reasonable price.
Evr never did share buy backs mainly because they want to be listed in the LSE to access debt and legitimatized evr as non-russian own. Buying back non-russian stocks before say delisting might be a mutual benefit for evr, Russians and non-russian shareholders.
I think evr outcome will be decided how crazy Putin gets and how long this war will drag for. Lifting sanctions is good for the economy and UK has been trigger happy with sanctions and alot of them won't stick if war ends.
While the UK govt has screwed us they are even more desperate not to see Ra win so unless evr goes bankrupt (and therefore everyone loses) the UK government probably will ensure the oligarchs not benefitted out of any sale without minority shareholders like us are compensated.
UK govt sanctioning EVR only hurts minority and non-russian shareholders because EVR has practically been cut off from the western world and RA has been sanctioned anyways.
The UK government practically choose on our behalf and decide they want EVR gone for sakes on media perception and vote getting despite it'll only be cash coming into the UK economy and into pension funds. I dare say if they are also shareholders things would be very different.
Evr has sufficient cash buffer for a long time and probably will be fine operationally, but I fear minority shareholders could get shafted but hoping there will be enough value there so we are left with something.
I'm surprised it took them this long to release an RNs on something everyone knows. The vagueness is disappointing. In due course, when will that be? Evr seem hellbent not to release any information to shareholders.
Surely we should be getting a RNS today? This is quiet significant news or is EVR just going to be quiet about it and if so it'll be very disappointing and I'm sure it's against LSE rules.
Both EVR and RASP site is down. However judging but rasp performance today doesn't appear to have any impact by the news (guess evr wasn't selling anything to the western nations anymore so perhaps already baked in).
The western nations had sanctioned almost anything that is Russian related (sons and daughters of this and that), not to mentioned the 300b of reserves locked up. I see some could be permanent sanctions and some are just temporary and will gradually be lifted.
I still think we'll be ok if the war doesn't drag on. The amount of money Russia has loss, it would have made more sense to instead used to better the lives on his own people.
Very true that bondholders is before shareholders in the queue but thats not relevant right now as evr isn't going into liquidation (far from it). Evr is cashed up and low debt so unless they are lossing alot of money we should be ok (for now).
Furthermore the oligarchs are also shareholders so same queue as us and I can't see why they want to tank their own investment.
If there were dividends to be paid and RA gets nothing or donate to Ukraine I can see UK govt making exceptions as it means 500-1b of cash taken out of Russia and putting it back to the UK economy.
Lodan - why do you think the bondholders will get paid and we get nothing? Evr is still cashflow positive (I think), and they have more than enough cash to pay their debt.
One way we get nothing is that Russia going out of their way to to screw us otherwise the rule of law still exist.
Lodan - Chelsea is a great example where the govt gave special consideration to bypass sanctions. I would say EVR NA was another special consideration.
If a deal ensures the div goes to UK pensioners / shareholders and RA still in escrow then I can't see why there won't be special consideration for that as well.
If EVR is profitable and does not need refinancing then it's better than going broke. I admit this is no longer weeks / months wait anymore but it's in my sipp so I have plenty of time.
I'm not sure how the evr NA debt is structured but I think $400m of the debt relates to rasp. USD denominated coupon is about $1.4m but probably worth less if you buy the coupon on-market.
I think EVR is still profitable so writing off our investment is a tad too early, it'll have to be bottom draw for awhile. I'm not against evr not paying any dividends and just pay off their debt asap and hope in 1-2 years time when this is behind us relist / buyout.
Evr NA is its own seperate legal entity therefore the debt and operations are separate to that of EVR russian and just merely consolidates into the overall company. This is a a good thing as it'll be easy to sell off if need be. This is done incase say EVR russian goes backrupt Evr NA still survives, it's a pretty common set up.
Evr NA should alone be worth the current SP but the jewel in evr is rasp and it's russian assets.
Not alot we can do but wait and see, but I would imagine alot of corporate overhead costs is going to be needed to get non-uk professional service and potentially unable to pay the debt relating to evr Russia.
Like Chelsea I hope the UK government will give exception on dividend payments to UK citizens, this of course the invasion need to end first.
'The government issued a separate licence which said people could continue business operations involving Evraz's North American subsidiaries.'
So EVR NA is ok. Perhaps spin off EVR NA and then we wait out the outcome of this.
We need to wait for the RNS on the implications of this mess.
So this isn't about RA and not about tanks, its about the fact they have lots of operations in Russia.
Now that Evr is sanctioned, we just need to understand the consequences as evr is not listed anywhere else.
I do hope if that does happen the government will compensate us with things they confiscate. Let's hope it doesn't come to that as it would be disatrous for alot of people and would put Russia in the same league as North Korea.
https://www.bbc.com/news/uk-61321530
Does anyone know if evr is impacted ? They are technically not a russian company right? Just wanting to make sure UK is still working on that assumption.
Rouble is at a 2 year high against the pound and rasp alone is nearing £2 for evr holders now. Rasp AGM in 4 weeks, they can't cancel that! The risk is Putin can take it all away, lets hope his surgery takes a nasty turn.
The situation is truly horrendous. You have argubly the richest man in the world at aged 70 calling the shots and lived a privileged life by eliminating his competitors whom cares more about his ego than his people. He's got nothing to lose at his age.
Imagine spending the money on his people or the Donbas region instead on his war machine / pride, the Donbas region would probably be the wealthiest region in Ukrain. But then again if people are too well off it might not be good for his regime.