REG - PJSC Tatneft - Draft Law; Rating Withdrawal

Tatneft' Imeni V.D. Shashina PAOAnnouncement

01/04/2022 15:15

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RNS Number : 0177H  PJSC Tatneft  01 April 2022

1 April 2022

 

Draft Law Affecting ADR Program; Withdrawal of Credit Rating

 

On 1 April 2022 a draft bill "On amendments to the Federal Law "On Joint Stock
Companies" and Article 5 of the Federal Law "On auditing activities" (the
"Bill") proposed for the second reading in the Russian State Duma (the
"Duma"), the lower chamber of the Russian Parliament, was published on the
website of the Duma.

 

If the Bill adopted in the way it is currently drafted, approved by the
Council of the Federation, the upper chamber of the Parliament, and signed
into law by the President of Russia (the "Law"), it would require PJSC Tatneft
(the "Company") as a Russian issuer to immediately initiate the termination of
the deposit agreement relating to the Company's ADRs (the "Deposit Agreement")
and the related ADR facility.  As of the effective day of the Law (currently
proposed to be 10 days after its official publication) no new deposits of
ordinary shares into the ADR facility would be possible and the ADRs would not
have voting rights and dividends would not be paid on such ADRs until they are
converted into ordinary shares as per the terms of the Deposit Agreement. The
rights of holders to respective ADRs would be determined as of the effective
day of the Law. The Bill currently provides for a possibility to obtain a
permission to continue the ADR program and respective trading in the ADRs
outside of Russia pursuant to a procedure to be set up by the Government of
Russia.

 

In light of the Bill and likelihood of it becoming a law in the nearest
future, the Company believes that it might be required to terminate the ADR
program and consequently delist its ADRs from the London Stock Exchange, and
to take other steps to comply with the Law. As of the date of this
announcement, the Company has no ability to determine any consequences of the
termination of the ADR program, including for holders of the ADRs, or whether
the Company would apply for a permission to have its ADR program continue as
per the provisions set out in the Bill.

 

 

            The Company further announces that on 31 March 2022,
Moody's Investors Service withdrew the credit ratings of the Company along
with the credit ratings of other Russian companies due to its own business
reasons associated with the sanctions by the EU restricting the provision of
rating services to persons in Russia.

 

Following the announcement by Fitch Ratings about its decision to withdraw
respective credit ratings on Russian entities
(https://www.fitchratings.com/research/banks/fitch-ratings-to-withdraw-ratings-on-russian-entities-23-03-2022),
the Company expects the withdrawal of its credit ratings by Fitch Ratings as
well.

 

 

Forward-looking statements:  This statement may contain certain
forward-looking statements of PJSC Tatneft.  PJSC Tatneft does not guarantee
occurrence of any events mentioned in such statements as well as term of their
occurrence.

 

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