RE: EVRAZ and it's future on the LSE02 Apr 2022 13:31
Hippo - you would have to sell the shares into the company which I think would be a chargeable event for CGT. Could way to crystallise a current losing position at the moment perhaps? You would have to have a very large holding to make that viable though I would have thought.
You’d still likely need Russian accounts though if they were to relist in Moscow and Putin carries on his protectionism of the Rouble like he’s doing with the Germans over the has contracts.
RE: EVRAZ and it's future on the LSE02 Apr 2022 11:48
Vicious - I’m almost certain that there restrictions on what can be held in a wrapper. Try purchasing something like Ali Baba in your ISA - ADRs are not allowable.
If the company was to relist in Moscow I’m almost certain the shares will come off your platform and you will own them outside of it. Then you’ll have to start looking at registering with the Russian tax authorities, Russian Ruble bank account for dividends, withholding tax etc, etc, as well as considering them for UK income tax on dividends as well as capital gains tax when you sell them.
I’m mentioned this the other day but sanctions are not applied as a criminal penalty so there is no crime as such. They are intended as a measure to financially restrict the recipients from carrying out the alleged wrongdoing.
So if the government think the oligarchs control Evraz and the company may have sold steel that was supplied to the Russian military they freeze their shareholding and therefore their ability to use the company to carry out said activity.
All this talk of divi …. Surely the first step would be to establish how well trading is going to see how much free cash flow is being generated.
If the current government are ousted I don’t see a labour government suddenly reversing sanctions. I think if anything they will be worse. They’ll be a return to anti business sentiment and they won’t give two ****s about trapped investors.
‘ Well because they have their primary listing in the UK, other jurisdictions would look carefully on any sanction placed on them by the FCA. I actually think for example that the coupon payment that was successfully wired was a near thing / squeaker. If Evraz gets sanctioned just for being a big Russian company, even in the UK where their sales and operations are small, the effect is the same; pariah status in countries that respect the FCA and/or the UK office of sanctions etc.’
Ideally they would need the US/EU onboard I guess.
Iodan - I’m pretty sure the government are well aware of the legal basis of all this. Why are Evraz lawyers not chomping at the bit to have the suspension lifted? I said earlier that I’m not sure how effective UK sanction on Evraz would be given the lack of commercial Uk activity.
I’m unsure on the delisting process but I’d like to think the government do not have the power to delist who they please (or that they would unless in the case of insolvency) and should be looking out for the interests of the minority holders which is what the suspension is designed to do.
Penguin - Yep stuck between a rock and a hard place. Here’s a connumdrum for you now. If you were sat on the board at this time reflecting would you rather be a global business or concentrated in Russia?