"There is a proposal to lift foreign market restrictions for Russia-only IPOs, following a certain time-out. The Service is considering this proposal", he said.

According to sources quoted earlier, incentives for Russian IPOs were discussed at a meeting with Presidential Aide Elvira Nabiullina on Wednesday, 17 October, particularly the lifting of DR conversion restrictions for Russian placements.

Today, Russian law limits placement and trading abroad to a maximum of 25% of the total amount of one share type and a maximum of 50% of the float.

A source at the meeting told Interfax that the possibility of lifting DR limits was considered for the whole amount floated in Russia. "If a company floats 100 shares, all of it can be converted to reciepts (25% minimum and upwards)", he said.

According to source, the meeting memo instructs FFMS to draft a regulation on abolishing the restrictions.

In the recent Sberbank SPO, a mere 2,89% was floated on the Russian exchange. As a result, the amount of Sberbank shares traded abroad reached the 25% limit following the SPO. Sberbank placed 7,64% ordinaries worth $5,2bn.

Project Group №1, Elvira Nabiullina, Dmitry Pankin