Trading in 27 companies that have links to Russia suspended by London Stock Exchange, Business & Economy News

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In a potential move to tighten economic screws against Russia, the London Stock Exchange has suspended trading in 27 companies that have strong links with Russia. These companies include Gazprom and Sberbank. Gazprom is Russian energy company.

Action has also been taken against Severstal which is Russia’s largest steel and mining company. Severstal is owned by Alexei Mordashov, the richest man in Russia.

Aluminium comapany EN+, co-owned by Russian oligarch Oleg Deripaska, has also been barred. Other companies which have found themselves to have been targetted are Rosneft and VK. The latter is parent company of social media platform VKontakte. It is bigger than Facebook in Russia.

Some other companies in the list are PhosAgro (fertiliser company), Lukoil (energy firm), Polyus (Gold producer), Novolipetsk Steel.

The London Stock Exchange said that such a step was taken “in light of market conditions, and in order to maintain orderly markets”

Russia is currently invading Ukraine and the intense global pressure in terms of economic sanctions have begun to take toll on Russian businesses.

In related but distinct development, In the rebalance, Evraz and Polymetal International will exit the FTSE 100 and enter the FTSE 250 index, FTSE Russell, a subsidiary of the LSE, said in a statement. 

The changes — part of the quarterly reshuffle of the FTSE 100 — will take effect from the start of trading on March 21, it added.

Both companies’ share prices have tanked in the past week, making their relegation inevitable, market watchers said. 

Polymetal International is a gold miner, while Evraz specialises in steel.

(With inputs from agencies) 

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