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• The investors will not be able to take advantage of UK tax benefits while trading on MOEX
United Kingdom said that it would suspend the Moscow Stock Exchange's (MOEX) status as a recognized stock exchange in retaliation to Russia's illegal invasion of Ukraine.
This implies that investors will no longer be able to take advantage of certain UK tax benefits while trading securities on MOEX, but their current investments will be safe.
“As we continue to isolate Russia in response to their illegal war on Ukraine, revoking Moscow Stock Exchange’s recognized status sends a clear message – there is no case for new investments in Russia,” Britain's Financial Secretary to the Treasury, Lucy Frazer, said in a statement.
The UK claimed the decision was in response to limitations imposed by the Bank of Russia on foreign investors, citing a February 28 MOEX rule prohibiting brokers from selling assets on behalf of non-Russian persons.
“The exchange is no longer operating in line with the normal commercial standards expected of a recognized exchange,” the government said in a statement.
The tax authority also initiated a two-week consultation period, which includes the draft revocation order, and invite interested parties to provide feedback before the terms are made official.
Picture Credits: Reuters
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