SINGAPORE - Companies or trusts listed on the Singapore Exchange (SGX) that are subject to sanctions or engaging in sanctioned business dealings with Russia should suspend trading of their listed securities until they have demonstrated that the sanctions no longer apply to their businesses, SGX said on Monday (March 7).

They must also immediately conduct an assessment on the financial and operational impact of the sanctions, and announce this on the exchange.

The Singapore Exchange Regulation on Monday also suspended the admission to trading of PJSC Gazprom's global depository receipts due to sanctions imposed on Russia by the Singapore Government following Russia's invasion of Ukraine.

Gazprom is a Russian oil and gas company in which the Russian government has a controlling interest of more than 50 per cent.

The SGX announcements come after Singapore, in a detailed update on Saturday to sanctions first imposed on Russia on Feb 28, said banks and other financial institutions here will be banned from doing business with four Russian banks.

The sanctions also involve a ban on the export of electronics, computers and military goods to Russia.

All issuers affected by the trading suspensions should submit proposals to SGX within 12 months from the date of suspension on any remediation measures, which should be implemented to resolve risks.

An issuer is a legal entity that develops, registers and sells securities to finance its operations. Issuers may be corporations, investment trusts, or domestic or foreign governments, and are legally responsible for the obligations of the issue as required by the regulations of their jurisdictions.

The remediation proposals should be carried out within six months from the date that SGX approves of them. The issuer is also expected to provide monthly updates of the milestones in completing the remediation proposals.

If an issuer fails to submit its remediation proposals or carry out its remediation plans within the stated time period, it may be removed from the SGX Official List, which consists of companies admitted to the SGX mainboard and SGX Catalist.

This means that the issuer will no longer be able to trade or issue shares on the SGX.

When the sanctions no longer apply to the issuer, such as when sanctions have been lifted, the issuers must make an announcement and explain the financial impact of the move to its shareholders.

On Sunday, Russia-based, Singapore-listed Don Agro disclosed responses to SGX queries regarding its business of growing agricultural crops and production of raw milk in Russia, which is then exported, including to the European Union and United States.

The company said that an external sanctions counsel has reviewed and confirmed that it is in compliance with its sanction compliance policy as at Dec 31, 2021, and is now procuring a legal opinion with regard to the implications of the latest imposition of sanctions and current geopolitical situation on its business.

Don Agro said it deals with Russian oil and gas companies Rosneft, Lukoil and Gazprom in the course of its business. It also has "significant" dealings with Russian bank Sberbank and Rosselkhozbank, where it has deposited 70.7 per cent of its total cash and cash equivalents as at Dec 31, 2021.

In a March 2 update, Singapore-listed instant beverage maker Food Empire disclosed that it had temporarily closed its factory in Ukraine and suspended sales activities due to "massive disruptions to supply chains, damage to public infrastructure and human displacement".

Food Empire added that it is "actively assessing the impact of the conflict on its businesses and will progressively roll out suitable measures to mitigate the fallout in affected markets".

Other Singapore-listed issuers with businesses in Russia include oil trader Trafigura, and food commodities traders Wilmar International and Olam International.

• Additional reporting by Kang Wan Chern