Support The Moscow Times!

Central Bank Allows Trading of Foreign Shares

The Central Bank has decided to alter its policy and allow trading of foreign stocks in Russia without direct consent of their issuers, as long as the broker offering the shares takes responsibility for providing full disclosure, Vedomosti reported Thursday.

"Admitting first-class foreign issuers to the Russian market can give momentum to the development of the Russian financial market and the creation of a financial center in Moscow," a spokesman from the regulator's Service for Financial Markets said.

A law that went into force on Sept. 30 had required stock exchanges to sign agreements with issuers before permitting trades of foreign stocks.

The restriction prevented the Saint Petersburg stock exchange from launching trade of 108 foreign securities. At that time, 40 issuers spoke out against their stocks being traded in Russia, while Goldman Sachs registered a complaint about the exchange with the Central Bank.

The change will require corresponding alterations to laws on insider trading, as foreign issuers may currently be held accountable even if their stocks were traded in Russia without their consent, said Alexei Timofeyev, chairman of the Russian National Association of Securities Market Participants.

… we have a small favor to ask.

As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just 2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.


Read more