Sanctions-hit Sberbank and VTB, Russia's largest lenders, will be kept in the MSCI Russia Index, index compiler MSCI said late Friday.
MSCI said the decision was made following consultation with the investment community regarding the treatment of Sberbank and VTB in the context of the U.S. and European economic sanctions imposed against Russia over its policy in Ukraine.
Brussels has banned all EU nationals and companies from buying or selling new bonds, equity or other financial instruments with a maturity of more than 90 days issued by Sberbank, VTB and three other major state-owned Russian banks or those acting on their behalf.
The possible exclusion of Sberbank's shares from the index has added to nervousness in the Russian stock market.
MSCI indexes are used by many investment funds to determine their weightings, so exclusion from the Russia index could have significantly reduced demand for the banks' shares.
MSCI said it decided to maintain both banks in the index "until further notice, as the issues potentially resulting from the commingling of existing and new equity are not perceived as an immediate concern by most consulted market participants."
Both Sberbank and VTB have officially announced that they do not intend to issue new shares in the near future, MSCI said.
See also:
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
