London Stock Exchange suspends trading in several GDRs of Russian firms (updated)

Globaltrans Investment

03/03/2022 08:04

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    March 3 (Reuters) - The London Stock Exchange said on
Thursday it had suspended with immediate effect the trading of
global depository receipts (GDRs) of several Russia-based
companies including Rosneft, Sberbank, Gazprom, En+ and Lukoil.
    The LSE has 24 companies incorporated in Russia trading on
its bourse, of which 17 are suspended. GDRs are negotiable
certificates issued by a bank which represent shares in a
foreign company but traded locally. 
    However, the ban also affected a number of other Russian
companies such as En+ which is incorporated in the United
Kingdom.
    "Further to recent sanctions in connection with events in
Ukraine, in light of market conditions, and in order to maintain
orderly markets, the London Stock Exchange has suspended the
admission to trading of the instruments ...with immediate
effect," the LSE said in a statement.
    Britain and other Western countries have imposed sanctions
on Moscow over its invasion of Ukraine, including freezing
Russian central bank assets and disconnecting seven Russian
banks from the SWIFT financial messaging system.
    On Tuesday, the LSE said it would halt trading in the GDRs
of Russia's VTB Bank  VTBR.MM .  urn:newsml:reuters.com:*:nASN0026H5
    The price of the GDRs of Russian companies have plunged as a
consequence of the conflict in Ukraine and subsequent sanctions.
    Sberbank's GDRs in London  SBNCyq.L  on Tuesday were worth
barely a cent after a plunge of 99.9% in 2022.  ID:nL8N2V52VY 

 (Reporting by Yadarisa Shabong in Bengaluru and Karin
Strohecker and Andres Gonzalez; editing by Rashmi Aich and Jason
Neely)
 ((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa;
 +919742735150;))