The Moscow Exchange, Russia’s main stock exchange and marketplace, has been suspended by the World Federation of Exchanges (WFE) in response to the invasion of Ukraine.
Announcing Russia’s suspension, the WFE told Newsweek, “This week, the WFE Board called an extraordinary meeting to discuss the situation in Ukraine, the implications for the WFE, our industry and the global response. The Board took the decision to suspend Russian members and affiliates. This decision, which is consistent with the global response to this matter, was not taken lightly.”
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However, the WFE has said that Russia has only been suspended, not expelled, and that the decision on the inclusion/exclusion of the Moscow Exchange will be reviewed later in line with the WFE’s governance framework.
The WFE is a major global trade body, 43% of whose membership is accounted by that of Europe, and its decision to suspend Russia is expected to further damage an already hurt economy.
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The news comes a day after Federation of European Securities Exchanges (FESE), the European body for securities and derivative exchanges, voted unanimously to exclude Russia in response to the ongoing war in Ukraine.
“The Federation of European Securities Exchanges utterly condemns the Russian-led invasion of Ukraine. Our thoughts and unwavering support go out to the Ukrainian people,” the FESE said in a statement announcing Russia’s expulsion.
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“In light of the Russian government’s actions, the FESE Board has recommended that the General Assembly vote to exclude the Moscow Exchange from the association, stripping it of FESE observer member status,” it added.
The WFE’s decision to suspend also Russia comes amid intensifying backlash against the Russian invasion of Ukraine. While Western countries have imposed a host of sanctions on Russian institutions and individuals, the cultural and sporting backlash against Russia, too, has been swift and unforgiving.