16.3 C
New York
Wednesday, May 25, 2022

European financial institutions turn their backs on Russia

- Advertisement -
- Advertisement -

By Tom Sims, Simon Jessop and Paul Arnold

FRANKFURT/LONDON/ZURICH, March 14 (Reuters) – Deutsche Bank has backtracked, saying it will withdraw completely from Russia and the London Stock Exchange Group has suspended all its services in the country, as Western governments impose sanctions over the Ukraine invasion. .

The German, which had faced harsh criticism from some investors and politicians for its continued ties to Russia, said late on Friday that it was closing its business there.

The unexpected move places the German bank alongside big US banks Goldman Sachs and JPMorgan Chase, which pulled out of Russia after the Feb. 24 invasion, showing pressure on rivals to continue breaking ties.

German had argued that he needed to support multinational companies doing business in Russia. But on Friday afternoon in Frankfurt, the bank suddenly changed course.

“We are in the process of winding down our remaining business in Russia while helping our non-Russian multinational clients wind down their operations,” the bank said. “There will be no new business in Russia.”

The Zurich insurer is no longer accepting new clients in Russia and is not renewing existing business, a spokesman told Reuters on Monday.

Asset managers have also said they will not make new investments in Russia and many Russia-focused funds have been frozen due to being unable to operate following Western sanctions and Moscow countermeasures.

British stock exchange London Stock Exchange Group late on Friday that it was suspending all products and services for all clients in Russia, days after suspending the distribution of news and commentary in the country following new laws from Moscow.

“LSEG confirms that it is suspending all products and services for all customers in Russia, subject to any regulatory requirements,” the company said in a statement.

“We continue to support our employees in the region. We are also engaging with our customers outside of Russia who rely on us for data and pricing information within Russia. We are evaluating alternative options to continue providing these services,” he added.

Index provider FTSE Russell said on Monday it will remove four UK-listed, Russia-focused companies, including Roman Abramovich’s Evraz, after many brokers refused to trade their shares.

Evraz, along with Polymetal International, Petropavlovsk and Raven Property Group will be removed from all FTSE indices during the March review, it said in a statement.

(Reporting added by Iain Withers and Joao Manuel Mauricio; written by Carolyn Cohn; edited in Spain by Carlos Serrano)

Source link

- Advertisement -

New Articles