The Treasury has announced plans to revoke the Moscow Stock Exchange’s recognised status today as ministers look to further cut off funding from flowing into Russian firms.
UK investors will now be locked out of certain UK tax benefits when trading securities on the exchange, although ministers said that existing investments will be protected.
Officials said the move would further isolate Russian firms and stem the flow of cash into the country.
“As we continue to isolate Russia in response to their illegal war on Ukraine, revoking Moscow Stock Exchange’s recognised status sends a clear message – there is no case for new investments in Russia,” said financial Secretary to the Treasury Lucy Frazer.
Recognised stock exchange status is a classification given by HMRC for tax purposes, with recognised status affording investors certain tax treatments and reliefs.
The move comes after the the Russian central bank banned brokers from selling assets at the instruction of non-residents of Russia in February after the invasion, which the Treasury said means it is no longer operating in line with the “normal commercial standards expected of a recognised exchange”.
Putin has looked to close ranks further for Russia firms in recent days, banning homegrown businesses from secondary listing global depository receipts (GDRs) overseas.
Global depository receipts for firms including state-backed lender Sberbank and gas giant Gazprom have cratered after the invasion of Ukraine.