Bank / Credit Union

Deutsche Bank reports Russian stocks are missing

William - stock.adobe.com

June 27, 2023

Deutsche Bank has announced it cannot guarantee access to Russian stocks. In particular, it said it discovered a shortfall in shares of back depositary receipts that were held in Russia by a different depositary bank, according to a Reuters report.

The bank claims Moscow allowed investors to convert the depositary receipts into local stock without Deutsche's "involvement or oversight." These DRs are certificates that represent shares in a foreign company. Some of these impacted shares include airline Aeroflot, construction firm LSR Group, mining and steel firm Mechel and Novolipetsk Steel.

Due to the ongoing Russian invasion of Ukraine, there have been significant sanctions from Western nations and Russian countermeasures which have left many assets in questionable situations.

"Literally everything in Russia has been vulnerable, whether its these DRs, equities, real estate or any other form of financial asset," Irina Tsukerman, president at risk consultancy Scarab Rising, told Reuters.

Deutsche Bank is allowing investors to swap these Russian DRs for shares as part of a larger plan to exit all of its business in Russia.