Thoughts on sanctions against the St. Petersburg Stock Exchange


For information: this exchange continued to provide Russians with easy access to foreign stocks, including "friendly" countries. In early November, the exchange came under sanctions and froze trading in these securities.
Is the management of the exchange and the Central Bank to blame? Partially yes. It was necessary to understand that the risk of sanctions is extremely high - and warn about it when buying shares. And access to the trading of shares of "friendly" countries was provided even for those who did not have the status of a qualified investor. And the requirements for obtaining the status of "qual" are very small.

Will the papers unlock? I'm sure not, as long as what started on February 24 last year continues, plus at least another couple of years (policy easing does not happen in one day). There are foreigners in the chain of depositories, and they, even if they are considered "friendly" by the Russian authorities, will not take the risk of sanctions. Do you remember how the same Sberbank, VTB and others promised to replace Visa and MasterCard with Chinese UnionPay? Allegedly, China is oh how friendly to us. The cards of all Russian banks that were sanctioned by the Chinese payment system were quickly blocked abroad. Our "friends" are involved in the global economy, and they will be afraid of sanctions. St. Petersburg Stock Exchange will not be able to unblock shares, being a sub-sanctioned one.

Will St. Petersburg Stock Exchange die? Rather yes than no. Trading in American and Hong Kong stocks was its uniqueness. It is destroyed. It is unlikely that the exchange will be able to provide access to trading in shares of "friendly" countries - the above-described risks of sanctions. Except for trading in Indian and similar stocks that nobody really needs. And trading in Russian securities on this exchange will not be large in volume - the liquidity on the Moscow Exchange is incomparably higher.

What to do? But nothing. To invest in the Russian market - it will not go anywhere with any outcome of the geopolitical confrontation. And if the savings are significant - diversify through direct access to the American market. Fortunately, many Russian brokers without state participation began to provide such a service through foreign legal entities.

Tags: #politics   #economy

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