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Factbox: Actions taken on Russian firms by market institutions after new U.S. sanctions

Reuters  |  LONDON 

By Claire Milhench

LONDON (Reuters) - Banks, providers and dealing platforms are trying to distance themselves from a group of Russian companies targeted by the latest sanctions.

The measures give U.S. investors until May 7 to divest any stocks, bonds or other holdings in targeted firms while also barring them from business dealings with the sanctioned companies and individuals after that date.

The sanctions affect seven oligarchs and 12 companies they own or control including En+, GAZ, and Rusal.

Here is a round up of actions taken by ratings agencies, providers, clearing houses, banks and regulators in response to the blacklist.

INDEXES

- FTSE Russell said it would delete and United Company Rusal from FTSE Russell's equity indexes, effective from the open on April 13.

- MSCI said it may delete from its Indexes after the Swiss engineer's largest shareholder, Renova Holdings, was included on the new U.S. sanctions list. The sanctioned Russian names are not currently in any MSCI indexes. But said on Thursday it was free of U.S. sanctions after authorities approved its buyback of shares, reducing sanctioned Russian oligarch Viktor Vekselberg's stake to less than 50 percent.

- said Rusal is no longer eligible for its group of emerging market corporate bonds and will be excluded on April 30.

- Indices said they were watching the story closely and assessing the impact of the proposed sanctions.

- UK's (FCA) said it was reviewing the new U.S. sanctions to determine what impact they may have on UK-listed firms.

- ICE said debt issued by would be removed at its April 30 rebalancing, as debt subject to sanctions do not qualify for its indices. As of March 31, the debt carries a 0.10 percent weight in its Emerging Markets Corporate Plus and a 0.07 percent weight in its Global High Yield

RATINGS AGENCIES

- has withdrawn its rating on Rusal, citing "business reasons". It had held a 'positive' outlook on Rusal's non-investment grade Ba3 rating.

METALS

- Exchange said Rusal's aluminium would be suspended from its list of approved brands from April 17 after some members raised concerns about settling contracts with sanctions-hit companies.

- revoked approved status for Rusal's for delivery against CME aluminium futures contracts, effective from April 10.

TRADE PLATFORMS AND CLEARING HOUSES

- Marketaxess, one of the world's biggest multi-dealer trading systems, has removed Rusal debt from its platform.

- Tradeweb, one of the world's largest bond platforms, which is majority-owned by Corp, said it no longer carried Rusal debt prices.

- users in told that had stopped displaying share prices of Rusal, and declined to comment.

- Clearing house said it would not facilitate transactions in securities issued by so-called Specially Designated Nationals identified by the sanctions.

- has suspended automated processing of deals involving securities of the sanctioned firms in favour of manual settlement after due diligence.

BANKS/BROKERS/CORPORATES

- Traders on Wednesday said and had halted trading shares in Sulzer, amid uncertainty over the U.S. sanctions on major shareholder Russian billionaire

- suspended "ratings and estimates of following sanctions being placed on this entity".

- Russia's has terminated coverage of EN+ and Rusal with immediate effect, citing changes in the allocation of resources in its research department.

- has suspended coverage of until further notice.

- Cazenove said "following the addition of and PLC to the list, we are moving to Non-Rated on these names."

- Switzerland-based and producer said it would not "at this time" be swapping its shares in in EN+ due to U.S. sanctions on both firms.

(Reporting by Claire Milhench; additional reporting by Danilo Masoni, and Marc Jones; Editing by Hugh Lawson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, April 13 2018. 15:09 IST
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