22 Nov 2023 12:42

CBR, Moscow Exchange working on plan to minimize risks in event of sanctions

MOSCOW. Nov 22 (Interfax) - The Central Bank of Russia (CBR) is working out a plan of action with the Moscow Exchange in the event of sanctions that will mitigate risks for market participants, the CBR's head of financial stability, Yelizaveta Danilova said in an interview with Izvestia.

Asked if the imposition of sanctions against the Moscow Exchange would be a threat to financial stability, she said "no, it won't."

"We are always analyzing the risks of new sanctions. And here the most important thing for us is to have a plan of action in case this scenario comes to pass. We're working out a plan with the Moscow Exchange that will minimize risks for participants," Danilova said.

The U.S. Office of Foreign Assets Control (OFAC) put SPB Exchange on its sanctions list at the beginning of November. After this the exchange suspended trading of foreign securities. It is now working with legal advisors on possible ways to unblock client assets.

The infrastructure risks realized as a result of the sanctions against SPB Exchange directly hit primarily qualified investors, since unqualified investors essentially could not buy foreign equities, Central Bank chief Elvira Nabiullina said on the sidelines of the Finopolis forum.

Asked about the Moscow Exchange's readiness for the risk of sanctions, Nabiullina said at the time that the CBR is continually assessing risks to financial infrastructure, modelling the situation and taking steps to reduce these risks.