Russia’s State Duma has adopted a law to delist the depositary receipts that some major Russian companies, including Aeroflot (SU, Moscow Sheremetyevo), trade on stock exchanges abroad, RBK Novosti reported.

The new bill, passed on April 6, affects companies such as the flag carrier, Gazprom, Lukoil, Norilsk Nickel, Sberbank, and UTair (UT, Khanty-Mansiysk) owner Surgutneftegaz, which previously viewed having listings abroad as prestigious. RBK estimated there are 27 such firms.

Since the invasion of Ukraine on February 24, however, bourses in Western countries, notably the London Stock Exchange, have halted trading of Russian securities.

According to the new law, which the lower house of parliament passed on the third reading, these companies must take steps to deregister their depositary receipts - securities traded on exchanges that facilitate buying shares in foreign companies - and convert them into equities traded in Russia.

Initially, the draft law concerned the abolition of mandatory audits for some joint-stock companies but was later significantly revised to introduce, among other things, a ban on the circulation of new and existing depositary receipts on foreign exchanges.

The bill must now be approved by the upper house and then signed by President Vladimir Putin before becoming law.