Britain on Thursday revoked the status of the Moscow Stock Exchange (MOEX) as a recognized stock exchange, removing some tax breaks for new investors. Great Britain grants recognized status to certain stock exchanges, which allow securities traded there to benefit from specific tax relief. While existing investments through the MOEX will not be affected, new ones will no longer be able to benefit from it.
When Britain proposed the move last month, it said it was in response to restrictions the Bank of Russia had imposed on foreign investors, citing a Feb. 28 ban that prevented brokers from selling assets on education of non-Russian residents. “As the Moscow Stock Exchange failed to lift its restrictions on foreign investors, the UK had no choice but to withdraw its recognized status,” said Lucy Frazer, Treasury Financial Secretary.
“This will prevent additional money from flowing into Russian assets and send a clear message that there is no need for further investment in Russia.” The government said in April that the stock exchange was “no longer operating in accordance with normal trading standards expected of a recognized stock exchange”.
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