Economic Turmoil: The Impact of Sanctions on Moscow Exchange and Currency Trading
June 18, 2024, 3:48 am
The recent imposition of sanctions by both the United Kingdom and the United States has reverberated throughout the global financial landscape, particularly affecting the Moscow Exchange and key individuals within the trading platform. The restrictions placed on the Moscow Exchange have resulted in the inclusion of prominent figures such as Yuri Denisov, the head of the trading platform, in the UK's sanctions list. Additionally, companies like "SPB Exchange," S8 Capital's owner Armen Sarkisyan, Kismet Capital Group's founder Ivan Tavrin, and "Ingosstrakh" have also been targeted, totaling to 40 entities and individuals facing sanctions.
Furthermore, the National Bank of Kazakhstan is considering purchasing shares of the Kazakhstan Stock Exchange (KASE) from the Moscow Exchange using its own funds, as a response to the Russian trading platform being sanctioned. In a bid to counteract the impact of the sanctions, the Ministry of Economic Development in Russia has proposed the introduction of visa-on-arrival procedures and the unilateral cancellation of visas for certain countries.
The Moscow Exchange, along with the National Clearing Center (NCC) and the National Depository (ND), found themselves included in the US sanctions list on June 12th. Consequently, the Moscow Exchange ceased trading in US dollars and euros from June 13th onwards. Despite this development, experts interviewed by RB.RU believe that the inclusion of NCC, ND, and the Moscow Exchange in the sanctions list was not unexpected, and traders and investors should not anticipate significant changes in trading activities.
In response to the American sanctions against the Moscow Exchange, the Kazakhstan Stock Exchange has assured that the sanctions will not impact KASE's operations significantly, as the Russian platform's stake in the Kazakh exchange is relatively small. Additionally, the Central Bank of Russia decided to suspend trading in the Hong Kong dollar from June 13th onwards, emphasizing that currency trading is not essential for the convertibility of the ruble and the free circulation of foreign currency.
Financial institutions such as "Finam" and "BCS World of Investments" have restricted the withdrawal of dollars, euros, and Hong Kong dollars. While "Finam" is taking measures to enable investors to manage their funds, BCS has repeatedly warned clients about the risks associated with holding unfriendly currencies. Meanwhile, Raiffeisenbank announced that it would cease interest accrual on savings accounts from July 1st, with interest for June being paid out by the end of the month.
The Bank of Russia will now determine the official exchange rates of the dollar and euro based on reports from banks on transactions in the over-the-counter foreign exchange market, considering these off-exchange market data as representative. In a related development, banks in Kyrgyzstan have begun restricting transfers to and from Russia due to currency market volatility following the US sanctions against the Moscow Exchange.
In the realm of business and legal affairs, a court has ordered a trading company in Nizhny Novgorod to cease using the founder of Rutube's corporate name, OOO "Ruform." The Liberal Democratic Party of Russia has proposed a ban on paying salaries below the minimum wage in cash, with plans to amend the Labor Code of the Russian Federation accordingly.
In the tech and startup sector, Wildberries has announced plans to certify courses for working on their marketplace, allowing developers to apply for course evaluation on the PRO Wildberries website. Meanwhile, Yandex has finalized the acquisition of the advertising platform eLama, ensuring that clients retain access to all platform tools under the eLama brand.
The AI-assistant for online meetings, mymeet.ai, has secured 3 million rubles in funding for scaling up its current unit economics and expanding its product in the B2B direction. Looking ahead, the startup aims to launch a new round of investments this year, seeking to raise up to 10 million rubles.
In the realm of technology and services, the due diligence service "Kontur.Focus" has begun adding email addresses of individual entrepreneurs to their profiles, sourcing this information from the Unified State Register of Individual Entrepreneurs (EGRIP). Additionally, "Gazprom ID" has expanded its services to the external market, having previously been accessible only within the PAO "Gazprom" network.
VK has introduced its own platform for conducting A/B experiments, allowing developers to analyze new features in mobile applications on iOS and Android, as well as websites. On the social media front, the platform formerly known as Twitter, now rebranded as "Social Network X," has started automatically hiding user likes, making the "Likes" tab visible only to the account owner.
In a cybersecurity incident, MTS faced a significant DDoS attack, lasting for two hours and originating from 20,000 devices across various countries, including Ecuador and China. The attack disrupted the telecom operator's infrastructure, potentially leaving an entire region without communication services. In response to these challenges, MTS has launched its first installment payment service, "Flex," allowing customers to make a 25% initial payment for purchases.
As the economic landscape continues to shift in response to geopolitical events and regulatory actions, the future remains uncertain for businesses, investors, and consumers alike. The evolving situation underscores the importance of vigilance, adaptability, and strategic planning in navigating the complexities of the global financial ecosystem.
Furthermore, the National Bank of Kazakhstan is considering purchasing shares of the Kazakhstan Stock Exchange (KASE) from the Moscow Exchange using its own funds, as a response to the Russian trading platform being sanctioned. In a bid to counteract the impact of the sanctions, the Ministry of Economic Development in Russia has proposed the introduction of visa-on-arrival procedures and the unilateral cancellation of visas for certain countries.
The Moscow Exchange, along with the National Clearing Center (NCC) and the National Depository (ND), found themselves included in the US sanctions list on June 12th. Consequently, the Moscow Exchange ceased trading in US dollars and euros from June 13th onwards. Despite this development, experts interviewed by RB.RU believe that the inclusion of NCC, ND, and the Moscow Exchange in the sanctions list was not unexpected, and traders and investors should not anticipate significant changes in trading activities.
In response to the American sanctions against the Moscow Exchange, the Kazakhstan Stock Exchange has assured that the sanctions will not impact KASE's operations significantly, as the Russian platform's stake in the Kazakh exchange is relatively small. Additionally, the Central Bank of Russia decided to suspend trading in the Hong Kong dollar from June 13th onwards, emphasizing that currency trading is not essential for the convertibility of the ruble and the free circulation of foreign currency.
Financial institutions such as "Finam" and "BCS World of Investments" have restricted the withdrawal of dollars, euros, and Hong Kong dollars. While "Finam" is taking measures to enable investors to manage their funds, BCS has repeatedly warned clients about the risks associated with holding unfriendly currencies. Meanwhile, Raiffeisenbank announced that it would cease interest accrual on savings accounts from July 1st, with interest for June being paid out by the end of the month.
The Bank of Russia will now determine the official exchange rates of the dollar and euro based on reports from banks on transactions in the over-the-counter foreign exchange market, considering these off-exchange market data as representative. In a related development, banks in Kyrgyzstan have begun restricting transfers to and from Russia due to currency market volatility following the US sanctions against the Moscow Exchange.
In the realm of business and legal affairs, a court has ordered a trading company in Nizhny Novgorod to cease using the founder of Rutube's corporate name, OOO "Ruform." The Liberal Democratic Party of Russia has proposed a ban on paying salaries below the minimum wage in cash, with plans to amend the Labor Code of the Russian Federation accordingly.
In the tech and startup sector, Wildberries has announced plans to certify courses for working on their marketplace, allowing developers to apply for course evaluation on the PRO Wildberries website. Meanwhile, Yandex has finalized the acquisition of the advertising platform eLama, ensuring that clients retain access to all platform tools under the eLama brand.
The AI-assistant for online meetings, mymeet.ai, has secured 3 million rubles in funding for scaling up its current unit economics and expanding its product in the B2B direction. Looking ahead, the startup aims to launch a new round of investments this year, seeking to raise up to 10 million rubles.
In the realm of technology and services, the due diligence service "Kontur.Focus" has begun adding email addresses of individual entrepreneurs to their profiles, sourcing this information from the Unified State Register of Individual Entrepreneurs (EGRIP). Additionally, "Gazprom ID" has expanded its services to the external market, having previously been accessible only within the PAO "Gazprom" network.
VK has introduced its own platform for conducting A/B experiments, allowing developers to analyze new features in mobile applications on iOS and Android, as well as websites. On the social media front, the platform formerly known as Twitter, now rebranded as "Social Network X," has started automatically hiding user likes, making the "Likes" tab visible only to the account owner.
In a cybersecurity incident, MTS faced a significant DDoS attack, lasting for two hours and originating from 20,000 devices across various countries, including Ecuador and China. The attack disrupted the telecom operator's infrastructure, potentially leaving an entire region without communication services. In response to these challenges, MTS has launched its first installment payment service, "Flex," allowing customers to make a 25% initial payment for purchases.
As the economic landscape continues to shift in response to geopolitical events and regulatory actions, the future remains uncertain for businesses, investors, and consumers alike. The evolving situation underscores the importance of vigilance, adaptability, and strategic planning in navigating the complexities of the global financial ecosystem.