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    Russian Depositary Receipts to appear in 1Q07 - Vyugin

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    MOSCOW, July 4 (RIA Novosti) - Russian Depositary Receipts (RDRs) will start circulating on the domestic stock market in the first quarter of 2007, the head of the market watchdog said Tuesday.

    Oleg Vyugin, the head of the Federal Financial Market Service (FFMS), said the bill on RDRs had passed the first out of three readings in the State Duma, Russia's lower house of parliament.

    "In the fall, the bill will probably pass the other readings and the document will be approved at the end of the year," Vyugin said. "Taking into account its registration with the Justice Ministry, the circulation of RDRs will most likely start in the first quarter."

    Vyugin said RDRs as a financial instrument did not yet exist and the FFMS could not require all companies with real foreign ownership operating in Russia to place shares initially on the local market and subsequently overseas.

    Vyugin said it would be advantageous for companies with their core business in Russia to place shares locally through RDRs because this practice would provide an image booster.

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