London Stock Exchange suspends trading in several GDRs of Russian firms

(Reuters) -The London Stock Exchange said on Thursday 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 such as En+ which is incorporated in the United Kingdom.

“Further to recent sanctions in connection with events in Ukraine, in light of market conditions, and in order to maintain orderly markets, the London Stock Exchange has suspended theadmission to trading of the instruments …with immediate effect,” the LSE said in a statement.

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% in 2022.

(Reporting by Yadarisa Shabong in Bengaluru and Karin Strohecker and Andres Gonzalez; editing by Rashmi Aich and Jason Neely)