Russia launches shareholder value program with new stock index

The Bank of Russia, in collaboration with the Moscow Exchange, has launched a shareholder value creation program aimed at enhancing the appeal of Russian public joint-stock companies to investors. This initiative seeks to increase capitalization and support corporate best practices.

The program introduces a benchmark group of issuers capable of rapid growth, acting as a catalyst for the stock market's overall capitalization. Eligible participants include issuers listed in Level One and Level Two quotation lists on the Moscow Exchange. Their securities will be incorporated into a new stock index that serves as a market benchmark for investors. Professional market participants can use this index to establish collective investment funds and trust management strategies based on indices.

Applications will be reviewed by a committee from the Moscow Exchange, the Bank of Russia, and the Analytical Credit Rating Agency. The committee will evaluate corporate governance efficacy, information transparency, and financial indicators. Participants must confirm their status annually.

Vladimir Chistyukhin, First Deputy Governor of the Bank of Russia, stated: "We will conclude that the programme has succeeded if two conditions are met. Firstly, if the number of its participants rises... Secondly, if the portion of the participants’ shareholder value in the total market capitalisation increases."

Viktor Zhidkov, Chairman of Moscow Exchange's Board commented: "The market’s long-term growth is driven primarily by high-quality issuers... When discussing the best way to introduce the new benchmark into the market... Therefore, an issuer will be granted the status of a participant in the programme only after..."

Issuers' applications will be accepted from March 31 through June 15, 2025.