Russia bans sale of Russian shares by foreigners

Follow Us @

Russia bans sale of Russian shares

The Russian central bank has banned stock traders from allowing foreigners to sell Russian shares. With this measure, the country wants to protect itself against the drastic sanctions that have been imposed. The Russian invasion of Ukraine has led to a flight of capital from national markets.

Restrictive measures have also been imposed on Russia’s central bank by the West. These are aimed at preventing Russian President Vladimir Putin from using the central bank’s $630 billion (559 billion euros) in reserves to finance the invasion of Ukraine.

It should also happen that he supports the value of the ruble with the money. The currency plunged more than 20 percent against the US dollar on Monday. It is not yet clear whether the stock exchange in Moscow will open on Monday.

Russia bans sale of Russian shares by foreigners

To counteract further depreciation and higher inflation, the Russian central bank has sharply raised the key interest rate from 9.5 to 20 percent. 

The country has ordered Russian companies to sell 80 percent of their reserves in foreign currency.

It was announced on Sunday that the British oil and gas group BP would end its stake in the Russian oil group Rosneft because of the Russian invasion of Ukraine. 

The company has had a nearly 20 percent stake in the company since 2013.

JOIN US ON WHATSAPP