Support The Moscow Times!

Moscow Stock Exchange Wins From Sanctions Fears

Anton Novoderzhkin / TASS

Fear of new sanctions is pushing Russian companies to quit the stock exchanges in London and New York in favor of the Moscow Exchange.

The United States imposed sanctions on officials and businesspeople connected to President Vladimir Putin in April for Russia’s alleged meddling in the 2016 election. Russian billionaire Oleg Deripaska, and eight companies in which he is a large shareholder including the world's second-largest aluminum producer, were among the hardest-hit blacklisted entities.

Sixty percent of dual-listed stocks of Russian companies are now handled on the Moscow Exchange, compared to 44 percent in 2014, when Western sanctions over Russia’s annexation of the Crimean peninsula from Ukraine were first imposed, Bloomberg reported Monday.

“It really doesn’t make sense for Russian companies to list abroad in the current environment,” Yekaterina Iliouchenko, Frankfurt-based Union Investment Privatfonds money manager, told Bloomberg.

Companies were allegedly spooked by the blacklisting of Deripaska’s En+ Group less than a year after his holding company placed a $1.5 billion listing in London and Moscow. As a result, Deripaska had to give up majority share in one of his companies.

Meat producer Cherkizovo Group left the London stock exchange last year, while TMK are considering delisting, according to Bloomberg. Steelmaker Severstal is encouraging investors to buy local shares with no plans to delist from London yet.

Russian companies that were urged to list abroad are now “scheduling meetings to join the bourse,” Bloomberg reported, citing the Moscow Exchange’s managing director for client and corporate relations.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysiss and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

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 every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more