MSCI to remove Russian listings

MSCI announced on Thursday that it had frozen the index

LONDON:

Russia’s stock market is “uninvestable” after stringent new Western sanctions and central bank restrictions on trading, making removal of Russian listings from indexes a “natural next step”, a top executive at equity index provider MSCI said on Monday. “It would not make a lot of sense for us to continue to include Russian securities if our clients and investors cannot transact in the market,” Dimitris Melas, MSCI’s Head of Index Research and Chair of the Index Policy Committee, told Reuters. “It is obvious to all of us that the market is very difficult to trade and, in fact, it is uninvestable today.” Melas said the company could launch a consultation with investors immediately, the result of which could be announced within days along with the action which would be taken. MSCI announced on Thursday that it had frozen the index and would not implement the changes for Russian securities it had previously announced as part of its February review. 

Published in The Express Tribune, March 1st, 2022.

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