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Highlights
- The US has announced a series of sanctions, spanning banking curbs to asset freeze of wealthy Russian individuals and companies in response to Russia’s invasion of Ukraine.
- However, a few US-based Russian exchange-traded funds (ETFs) were trading after the NYSE and NASDAQ suspended the trading of Russian stocks.
- New US sanctions, likely to be enacted on March 26, will also target Russian banks Sberbank and VTB.
The New York Stock Exchange (NYSE) and the Nasdaq Stock Market halted trading of several US-listed Russian stocks on Monday morning after Washington announced new sanctions against Russia.
The NYSE said it stopped trading of Russian telecom operator Mobile TeleSystems (MBT), mining firm Mechel PAO (MTL) and real-estate classifieds firm Cian PLC (CIAN) due to “regulatory concern.”
Likewise, Nasdaq stopped trading in several other Russian stocks, such as search-engine operator Yandex NV (YNDX) and online retailer Ozon Holdings (OZON).
However, the stocks will not likely get delisted.
According to Wall Street Journal, which cited people familiar with the matter, the trade suspensions are temporary as both the exchanges are studying the compliance requirement for the new sanctions.
The US has announced a series of sanctions, spanning banking curbs to asset freeze of wealthy Russian individuals and companies in response to Russia’s invasion of Ukraine last Thursday.
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Source: Megapixl
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Moscow’s stock market remains closed
The Moscow stock market remained closed on Monday amid threats of more Western sanctions. It was also not immediately clear when the Russian stocks could start trading again in the US.
However, some Russian ETFs were still operating after the US exchanges halted trading.
On Monday morning, the VanEck Russia ETF (RSX) and iShares MSCI Russia ETF (ERUS) that track Russia-listed securities were trading. RSX declined about 27%, and ERUS fell almost 23% at around 1:00 pm ET.
The first round of US and European sanctions has dealt a severe blow to the Russian financial system. The sanctions aim at freezing the Russian central bank’s roughly US$630 billion in foreign reserve. New US sanctions, likely to be enacted on March 26, will also target Russian banks Sberbank and VTB.
Many countries have also cut off several major Russian banks from the SWIFT system that connects thousands of financial institutions around the world. Over the weekend, France has intercepted a Russian cargo vessel, ‘Baltic Leader’, in the English Channel to enforce the international sanction regime.
