Polymetal and Evraz have been booted from the FTSE 100.
Shares in both Russia-exposed miners suffered severe losses following Western sanctions on the companies in response to Russia’s invasion of Ukraine.
In a statement late on Wednesday, index provider FTSE Russell said gold producer Endeavour Mining and kitchens maker Howden Joinery will replace them on the FTSE 100 from the start of trading on Monday next week.
Polymetal and Evraz have been demoted to the FTSE 250 index, in line with analyst expectations.
So far, this year, Polymetal and Evraz shares are down 77 per cent and 82 per cent respectively.
Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown, said: “Instead of a gentle reshuffling of cards in the FTSE review, the conflict in Ukraine has thrown the pack up in the air, with Russian miners plummeting down in value.”
Endeavour Mining has benefited from the boom in gold, which is an attractive safe haven asset amid market volatility.
However, this has not been enough to save Evraz amid heavy Western sanctions on Kremlin-backed financial institutions.
“It may mine gold, but its main customers are Russian banks who sell it on to international gold markets, and with the corporate world increasingly freezing out Russia’s financial sector, investors are fleeing,” explained Streeter.