Russia’s Central Bank on Monday announced measures aimed at preventing investors from “hostile” countries from taking advantage of a plan to allow those from “friendly” countries to return to trading on the Moscow stock exchange.
As reported by international agency Reuters, the Moscow Stock Exchange said it would allow clients from “friendly” jurisdictions – or those that have not yet imposed sanctions on Russia for its actions in Ukraine – to start trading after a nearly six-month gap.
“Analysts said the delay was partly due to concerns that investors from the European Union, the United States and the United Kingdom – who are currently barred from trading in Moscow – could use those countries’ trade returns.” to get rid of any Russian shares they still have,” Reuters reported.
Likewise, the Central Bank announced that it was blocking the Russian depositary and registrar for six months from carrying out operations with securities received from foreign counterparties, including from “friendly” countries.
The regulator said it had seen brokers offer the option to purchase non-resident securities in foreign jurisdictions and then transfer the assets to a Russian depository, a move it described as risky and without “guaranteed financial returns.”
And that is Western sanctions have restricted Russia’s access to world stock marketswhile Moscow’s precautions have also blocked most foreigners from buying and selling Russian shares.
Keep in mind, since August 5, the President of Russia, Vladimir Putin, has banned it until the end of this year investors from countries “unfriendly” to Russia all kinds of operations with their shares in strategic companiesin particular, in the energy and state banking sectors.
In addition, he has ordered the Government and the Central Bank of Russia to prepare within ten days a list of companies and banks that will ban the operation.
In this way, the list of countries that are “unfriendly” to Russia, compiled by the Russian Government, covers 49 states, including all members of the European Union, United States, United Kingdom, Canada, Switzerland, Norway, Japan and Australia.
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