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ST. PETERSBURG, July 4. The Bank of Russia does not see the advisability of restarting the process of deconversion of depository receipts, First Deputy Chairman of the Central Bank of the Russian Federation Vladimir Chistyukhin told reporters.
“It must be said that the deconversion mechanism that was previously created has shown its effectiveness. We were able to return a huge amount of assets of Russian investors to the internal circuit,” he said on the sidelines of the Financial Congress of the Bank of Russia. 
“But at the same time, this mechanism also had a number of risk factors, which we also paid attention to. Firstly, these are the risks of fraud. It’s good that they did not become widespread, but nevertheless attempts were recorded,” he noted.
According to him, the point is that some of the applicants claimed that they owned some securities, and from the point of view of supporting documents then this was not a very simple question. “But these types of risks did not materialize significantly, although they were potentially significant,” he said. 
< br />The second point is related to the fact that some people saw in this mechanism an opportunity to purchase papers from non-residents at a large discount and pass them off as those that they had already had for a long time, he continued.
“And, of course, in this sense, if we now consider the issue of restarting this mechanism, then we really need to understand that, firstly, this is a significant request, but we don’t see this. Separately, we rarely receive any… statements of certain persons,» he said. 
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The Central Bank of the Russian Federation would like some relatively significant part of the professional community to declare a large volume for the exchange. “Therefore, potentially the tool is available, but in practice we do not see the advisability of a restart,” he concluded.
In April 2022, the law obliged Russian issuers to curtail depository receipt programs and convert them into shares. An automatic conversion process was then implemented, allowing investors to receive shares instead of receipts, bypassing foreign accounting infrastructure. At the same time, a forced conversion of receipts was carried out, the rights to which were taken into account by foreign depositories.