British authorities plan to rescind the Moscow stock exchange’s status in the UK as a recognized exchange, in retaliation for Russia’s restrictions on foreign investors and in a bid to discourage investment in Russia amid the war in Ukraine.
“As we continue to isolate Russia in response to their illegal war on Ukraine, revoking Moscow Stock Exchange’s recognized status sends a clear message—there is no case for new investments in Russia,” Britain’s Financial Secretary to the Treasury, Lucy Frazer, said in a statement.
The British agency said that the new curbs on investors obtaining certain tax treatments and relief will only apply to future investments in securities traded on MOEX, with existing ones remaining unaffected.
“We’ve designed the revocation order in such a way that investors should experience no change in respect of their pre-existing investments on MOEX–which we think is a fair approach and protects the interests of current UK taxpayers,” the agency said.
HMRC added that it’s taking the action alongside the series of sanctions the British government has imposed on Russia over its invasion of Ukraine, which the Kremlin calls a “special military operation” to topple the government in Kyiv and incapacitate its military.
The British agency also said that the move comes in response to restrictions imposed by Russia’s central bank on foreign investors, which led to MOEX banning brokers from selling assets owned by non-residents of Russia, which HMRC said means that MOEX “is no longer operating in line with the normal commercial standards expected of a recognized exchange.”
Following a two-week consultation period on the revocation order, HMRC said the changes will go into effect “if restrictions placed by MOEX on non-resident investors remain in place.”
The Epoch Times has reached out to MOEX for comment.
In related moves, Russia’s central bank said Tuesday that companies registered in Russia that have depository receipts traded on foreign stock exchanges must revoke them by May 5.
The central bank’s order does not affect companies with Russian roots that have carried out initial public offerings (IPOs) on foreign exchanges.
Russia on Tuesday was ramping up its offensive in eastern Ukraine as it seized a city on the frontline and sought to cement its control of the key port city of Mariupol, which has seen some of the most intense fighting of the war.
