Russia allows some more financial market operations over next two weeks

Russia’s central bank has allowed a limited number of additional financial market operations over the next two weeks, as it tentatively eases restrictions linked to the Ukraine conflict.

Stocks and bonds last traded on the Moscow Exchange on February 25, the day after Russia invaded Ukraine, after which the central bank curbed trading as Western sanctions threw markets into turmoil.

It allowed rouble trading to continue, with the currency slumping to record lows against the dollar and euro.

On Friday the central bank said trading in OFZ government bonds would restart on Monday. It is yet to say when trading in instruments like stocks can resume, as it looks for ways to clear a backlog of transactions while avoiding a market collapse.

On Saturday the Moscow Exchange said in a statement that the central bank had issued a permit allowing additional operations from March 21 to April 1, “to reduce liabilities arising from transactions made before Feb. 28, 2022, on the Moscow Exchange in the interests of non-residents, who are entities of foreign states engaged in unfriendly actions.”

Among the additional operations allowed are:

— Transactions in cases of non-fulfilment or improper fulfilment of obligations by the participant

— Trades for the purpose of transferring (prolonging) the obligations of clearing participants and their non-resident clients

— Transfers of securities based on the results of clearing on depository accounts

Additionally, the exchange said settlement operations may be carried out on:

— Transactions necessary to terminate obligations under these transactions and transactions related to them

— Transactions resulting from the transfer of obligations on initial transactions

“The permission implies the possibility for market participants to carry out operations on the exchange aimed solely at reducing the obligations of their clients who are entities of foreign states that carry out unfriendly actions,” the Moscow Exchange said.

Russia has drawn up a list of “unfriendly” countries, which corresponds with those that imposed sanctions. Among other things deals with companies and individuals from those countries have to be approved by a government commission.