The offices of the London Stock Exchange Group are seen in the City of London, UK, December 29, 2017. REUTERS / Toby Melville
I’m registering
- The LSE suspends trade with the GDR related to Russia
- Commercial insurers are withdrawing from Russian risk
- Investors continue to sell Russian assets
- Deutsche Bank is testing the Russian technology center
LONDON, March 4 – Russia’s global financial isolation intensified on Friday as the London Stock Exchange (LSE) halted trading in its latest Russian securities and some insurers withdrew exporters’ coverage due to Moscow’s invasion of Ukraine.
Banks, investors and insurers have intensified this pressure in recent days, abandoning their investments in Russia and suspending the provision of their services.
The LSE said it had suspended Global Depository Receipts (GDRs), which represent shares in a foreign company, for eight Russian companies, including Magnit and Sistema, after freezing trading with 28 companies on Thursday. Read more
I’m registering
The halt in trade comes as Britain, the European Union and the United States continue to impose financial sanctions on Russia to prevent its companies from gaining access to Western markets.
As Moscow’s bolts turn, credit insurers, which provide a financial security network for exports and imports, are withdrawing from covering their exports to Ukraine and Russia, given the risks of sanctions, high claims or missed payments, sources said. industry. Read more
The move in the global market of nearly 3 trillion dollars will increase additional pressure on the already faltering Russian economy.
“In the last week, commercial credit insurers will have stopped supporting the new risk for Ukraine and Russia,” said Nick Robson, world leader in credit specialties at insurance broker Marsh.
INVESTORS OUTSIDE
Meanwhile, British insurer and asset manager Royal London has become the latest Western investor to say it will sell its Russian assets as soon as possible, following numerous similar announcements in recent days.
“We can’t trade these things anyway, but as soon as we can, we obviously intend to sell them,” Royal London CEO Barry O’Dwyer told Reuters. Read more
The chief executive of another major British investment group, Schroeders, said Thursday that Russian stocks and bonds are now “in the realm of completely non-investment.” Read more
However, some investors are accumulating in Russian-linked funds, seeing the current difficulty levels as a potentially cheap entry point for Russian assets. Read more
Deutsche Bank (DBKGn.DE) said it had tested its operations in Russia, which employs about 1,500 workers at a major technology center, as banks with a significant Russian presence are struggling with the effects of growing financial isolation.
I’m registering
Report by Carolyn Cohn and Lawrence White, additional reports by Tom Sims and Frank Siebelt in Frankfurt, edited by Alexander Smith
Our standards: ‘ principles of trust.