The Moscow Stock Exchange has announced that it will halt trading in dollars and euros following the implementation of new sanctions by the United States. These sanctions aim to block capital flow in sectors such as sovereign debt, public conglomerates, and defense companies.
Prior to the introduction of these measures, Vladimir Putin had been working on attracting investments from both Russian and non-Russian investors through the stock market. However, on the day the new sanctions took effect, the Moscow Stock Exchange saw a decrease of 3.5-4% in its value, with the Moscow Stock Exchange company suffering a 15% loss. Despite these challenges, the exchange announced that clients would still have access to all trading platform segments, except for transactions in dollars and euros.
The US sanctions also affected other entities such as the National Clearing Center and around 300 other entities, including those in countries like China, Turkey, and the United Arab Emirates. Russian individuals and companies can still trade in euros and dollars through intermediaries, but foreign currency deposits could be impacted.
In addition to US sanctions, the UK has imposed a new package of sanctions against 42 Russian entities including the Moscow Stock Exchange, National Clearing Center and National Settlement Depository. The goal is to weaken Russia’s financial system and those supporting military activities in Ukraine. The UK sanctions also target suppliers of military goods to Russia including entities from China, Israel Kyrgyzstan and Turkey as well as ships transporting such goods from North Korea to Russia. These measures are part of a wider effort to pressure Russia and those providing military support to Ukraine.
