It’s nearly two weeks since the world witnessed Russian military forces begin an invasion of Ukraine. Since the beginning of this latest stage in the conflict between these two nations, countries and institutions across the globe have responded with many financial sanctions aimed at Russia. The latest of these sanctions sees the London Stock Exchange suspend trading for 27 companies that are heavily linked to Russia.
Which Companies Have Been Affected?
Among the 27 companies affected are the well-known Russian energy firm Gazprom, the low-carbon and renewable energy firm En+, and the Russian oil and gas company Lukoil.
These companies have had their financial trading suspended, which has contributed to the extensive impact on the Russian economy that we’ve seen over the last week.
The LSE has also blocked trading at Severstal, Russia’s largest mining and steel company that’s run by Alexei Mordashov, the country’s richest man.
Why The Suspension?
The London Stock Exchange made a statement that the decision to suspend trading was made on the basis of;
“events in Ukraine, in light of market conditions, and in order to maintain orderly markets”.
The move comes as part of a wider global response where trading in Russian stocks has come close to a complete halt. Given the role Russian energy plays within the western world, these sanctions are reflective of the severity of the situation between Russia and Ukraine.
Russian oligarchs, who have ties with many of the affected companies, have recently stated that such measures will not stop the war and events in Ukraine. Jeffrey Schott, a senior at the Peterson Institute for International Economics in Washington, warns of the potential negative effects of these measures.
He emphasises that the potential retaliation from Russia, in terms of both cyber and military action, should be considered before any further sanctions are made.
Further sanctions aimed at the Russian economy are expected within the coming weeks as the conflict continues.