LSE halts trading in Russian GDRs

London

THE London Stock Exchange said on Thursday (Mar 3) 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 like En+ which is incorporated in the United Kingdom.

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.

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 on Tuesday were worth barely a cent after a plunge of 99.9 per cent in 2022. REUTERS