The United Kingdom has announced that it will be revoking Russia’s Stock Exchange status in response to its two month-long invasion of Ukraine.

On Tuesday, the British government made the announcement in a press release. 

“The UK’s tax authority, HM Revenue and Customs (HMRC), has today (19 April 2022) announced its intention to revoke the Moscow Stock Exchange’s (MOEX) status as a recognised stock exchange,” the government said on its website.

Financial Secretary to the Treasury Lucy Frazer, said the ban was in response to restrictions the Bank of Russia had placed on foreign investors. 

“As we continue to isolate Russia in response to their illegal war on Ukraine, revoking Moscow Stock Exchange’s recognised status sends a clear message – there is no case for new investments in Russia,” Ms Frazer said in a statement.

The Boris Johnson-led government proposes to remove MOEX’s recognised stock exchange status, limit access to certain UK treatments as well as reliefs for future investments in securities traded on MOEX.

A two-week consultation period has been set so interested parties can deliberate before the terms are finalised.

The statement referred to the restrictions placed on foreign investors by the Bank of Russia in February. The Moscow Stock Exchange had banned brokers from selling assets at the instruction of non-residents of Russia. 

Russia had temporarily stopped foreign investors from dumping Russian assets in March, saying it wanted to ensure decisions were considered and not driven by political pressure, as sanctions continued to roll out after Moscow’s full-scale invasion of Ukraine.