Raab grilled by Naga Munchetty over sanctions on Russia
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The move follows the news on Thursday that 27 companies were suspended, including energy giant Gazprom and Russia’s largest lender Sberbank. Today’s update includes firms such as real estate company Etalon Group and Russia’s largest provider of digital services Rostelecom. Also included are supermarket chain O’Key and commercial seaport Novorossiysk. London Stock Exchange Group (LSEG) said the decision was taken following “the ongoing deterioration of market conditions” in order to “maintain orderly markets.”
The group added that the situation would remain under review.
Speaking on Thursday after the first wave of suspensions LSEG chief executive David Schwimmer said: “This has been based on sanctions and the ability to run an orderly market.
“Suspensions are driven by those decisions, so if we see any other any other securities affected by sanctions then similar actions will take place.”
Firms linked to Russia have had a turbulent time on London markets since the beginning of the conflict with firms such as Sberbank and Gazprom becoming penny stocks before their final suspension.
Western firms are increasingly distancing themselves from Russia, despite the potential costs.
This week saw oil majors BP and Shell along with Norway’s Equinor pull out of investments and join ventures in Russia.
Peter Harrison, CEO of asset management firm Schroders, described Russian stocks and bonds as “in the realms of utterly uninvestable” in comments to Reuters.
AJ Bell financial analyst Danni Hewson commented: “No brand wants to be “that company”, the only one that didn’t take a stand when public opinion is so black and white.”
Even those still trading have continued to suffer with Russia focused miners Evraz and Polymetal both losing their place on the FTSE 100 index of biggest firms after their share prices collapsed.
Meanwhile in Russia where many of these firms have their primary listing the Moscow stock exchange has remained closed since Monday.
There has been little indication as to when the market might reopen with the Russian Central Bank only updating its status on a day by day basis.
A popular image shared on social media has been comparing the Moscow Exchange to a collapsing stack of bowls in a glass cabinet, held in place only by the closed door.
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The fear has been a mass-sell off and crash in share prices if and when the market is reopened.
In a bizarre exchange on Russian state TV one market strategist, Alexander Butmanov, heralded the “death of the stock market”, explaining that he would likely end up having to work as “Santa Claus”.
Holding up a bottle of soda he toasted: “Dear stock market, you were close to us, you were interesting, rest in peace dear comrade.”
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