Shares of MOEX fall 15.8%, shares of NOVATEK, Seligdar and Rusolovo down 7-12% on sanctions news
MOSCOW. June 13 (Interfax) - Shares of Moscow Exchange fell 15.8% at the start of trading on Thursday to 212.04 rubles per share, while shares of Novatek decreased 6.8% to 1005 rubles, and Seligdar dropped 10.3% or 64 rubles and shares of PJSC Rusolovo sank 11.9% to 0.92 rubles per share on news that the companies had been added to the US sanctions list.
OFAC (The Office of Foreign Assets Control, a division of the US Treasury Department responsible for sanctions-related law enforcement) has included the Moscow Exchange, the National Clearing Center (NCC) and the National Settlement Depository (NSD) on the sanctions list, a statement from the department said. OFAC also issued a license requiring that all operations with the Moscow Exchange, NSD and NCC be concluded by August 13. Another license sets a similar deadline for investors to exit their securities.
As the MOEX reported, trading in the US dollar, euro and Hong Kong dollar is stopped as of June 13 due to US sanctions. Meanwhile, trading on the MOEX stock and money markets on June 13 operate as per the standard schedule. Trading started at 9:50 Moscow time on the foreign exchange market and the precious metals market, as well as on the derivatives market (opening auction from 9:50 - 10:00 Moscow time; main session starts 10:00 Moscow time).
Dollar and euro transactions will continue on the over-the-counter market following the suspension of trading in these currencies on the MOEX due to US sanctions, a press release from the Bank of Russia said. The Central Bank will use bank reports and information received from digital over-the-counter trading platforms to determine the official exchange rates of the dollar and euro versus the ruble.
"Companies and citizens can continue to buy and sell US dollars and euros through Russian banks. All funds in US dollars and euros in accounts and deposits belonging to citizens and companies remain safe. For deposits and accounts belonging to citizens and organizations in US dollars and euros, the previous issuance procedures for funds established by the Bank of Russia is in place," the Central Bank said.
In addition to the MOEX and its group members the National Settlement Depository and the National Clearing Center, sanctions against whom have made exchange trading in dollars in Russia impossible, the SDN List includes a large set of companies from various sectors of the Russian economy.
Following the EU and Great Britain, the United States imposed sanctions against the Russian National Reinsurance Company. In addition, SOGAZ , Tochka Bank, Goznak and its head Arkady Trachuk are now on the sanctions list.
The SDN List now includes the companies Seligdar, Gazprom Invest, Uralredmet , Amur Metallurgical Plant, GT Morstroy JSC, Konar JSC, Rusolovo PJSC, Sinara Transport Machines, Rusgazdobycha, as well as several divisions of Novatek: Murmansk LNG, Obsky LNG, Murmansk-Transgaz, Arctic LNG 1, Arctic LNG 3, and Novatek LNG fuel Kashira.
Several companies from the Colestar and Elgaugol groups were also added to the SDN List.