European authorities have begun seizing the yachts of Russian oligarchs in a crackdown on Putin-linked billionaires as sanctions on the country intensify.
Russia’s continued invasion of Ukraine will cause further disruptions to the automotive industry’s supply chain, as well as impacting food supplies, Capital Economics said. “Aside from the most energy-intensive sectors, vehicle production seems most exposed,” the economic researcher added.
Cryptocurrency companies have been informed they must step up their efforts to enforce sanctions on Russia over concerns that digital tokens are being used to sidestep measures.
The London Stock Exchange has suspended trading in 27 companies freefalling Russian-linked companies, including Gazprom and Sberbank of Russia (OTC:AKSJF). Trading in Rosneft (AIM:ROSN), En+ and Lukoil has also been suspended as investors engage in a fire sale of Russian companies.
Vesuvius Plc (LSE:VSVS) (Vesuvius Plc (LSE:VSVS)) results were overshadowed by events this year due to the engineering and technology company’s exposure to Russia and Ukraine. “While we remain concerned about the potential direct and indirect impacts of recent geopolitical events, which have led us to suspend our deliveries to Russian customers for the duration of hostilities, we are nevertheless confident that the group will deliver a significant improvement in financial performance in 2022," said chief executive Patrick André.
Wednesday
European Airlines are trying to negotiate access to and out of Ukrainian airspace as the country enters deeper turmoil following last week’s invasion by Russia.
Chelsea’s Russian billionaire owner Roman Abramovich said he intends to sell the football club following increased pressure from the UK government to sanction oligarchs following Russia’s invasion of Ukraine.
OPEC+ oil producers resisted calls to increase output beyond initial plans for a modest increase in barrels per day production, as oil prices hit a seven-year-high. Sources told Reuters the group, which includes Russia, did not mention Ukraine at its latest meeting to determine production.
Another wave of oil and gas companies have ended their business arrangements in Russia, leaving the country further in the cold following its invasion of Ukraine.
Soaring wheat prices and concerns over fertilizer supplies following Russia’s invasion of Ukraine will likely put further pressure on already high food prices.
Oil prices surpassed US$110 per barrel despite Western powers agreeing to release 60 million barrels in reserves. The price of brent crude rose 5% to US$110.23 overnight, pushing it to a seven-year high as the security of Russian oil turned increasingly precarious.
The exposure of the European banking system to a sanctions-induced Russian financial crisis is low, according to Berenberg. The Russian economy has been hobbled by sanctions to its financial system, and was forced to raise interest rates to 20% over the weekend as the West cut the country off from foreign reserves and took major banks out of the SWIFT financial system.
But Berenberg’s senior economist Kallum Pickering said these impacts were unlikely to feed into the European banking system, with direct exposure to Russia’s economy and markets low, based on modest cross-border trade patterns.
More than £1bn worth of investor cash is locked up in Russian stocks after a collection of investment funds blocked withdrawals from the chaotic Russian market.
JPMorgan, Danske Bank and Schroders are among those that have suspended funds operating in Russia, after the country’s stock market closed on Monday having lost a third of its value in a day on the back of the country’s invasion of Ukraine.
Ford Motor Company (NYSE:F) suspended its operations in Russia until further notice due to the country’s continued invasion of Ukraine.
Apple halted sales of its products in Russia, as the corporate exodus from Russia continues amid unprecedented sanctions following its invasion of Ukraine. The company also limited the use of its Apple Pay and Apple Maps services, while removing Russian state-funded publishers like RT News and Sputnik from its app store.
London-listed Russian gold and silver miner Polymetal International said it is “shocked and appalled” by the events going on in Ukraine. The group, which operates mines in Russia and Kazakhstan, said the current intention is to operate as “normally as possible". Shares in Polymetal have tumbled almost 80% in the past fortnight
Tuesday
The world’s two biggest container lines have temporarily suspended cargo shipments in and out of Russia following the latest wave of Western sanctions designed to put pressure on the Kremlin.
JD Wetherspoon Plc (LSE:JDW) is to stop selling Baltika lager, which originates in Russia, in its pubs.
Superyachts owned by Russian oligarchs and billionaires closely associated with Vladamir Putin are headed towards Montenegro and the Maldives to avoid being seized following US and European sanctions.
Britain’s biggest maker of cars, JLR, has paused the delivery of vehicles to the Russian market.
The FTSE 100 was down more than 90 points at midday whilst Wall Street futures point to lose further ground.
Bitcoin has experienced a surge following Russia’s invasion of Ukraine, with citizens turning to cryptocurrency to store and move money. It comes as the Russian rouble has tanked to record lows as sanctions apply a squeeze to the country’s economy.
Citibank has confirmed it has more exposure to Russia than was first thought, adding to concerns over the level of write-offs western banks might have to take
YouTube, which is owned by Alphabet Inc’s Google, said Tuesday it will stop Russian state-owned media outlets Sputnik and RT from releasing content to Europe, with immediate effect, due to the country’s continued invasion of Ukraine.
MSCI and JP Morgan are under pressure to remove Russian stocks and bonds from emerging markets indices following Russia’s invasion of Ukraine last week.
Hundreds of aircraft leasing contracts with Russia have been terminated following the latest sanctions on the country’s aviation industry.
Five-minute guide to global depository receipts (GDRs)
Bitcoin has surpassed the market capitalisation of the Russian rouble following a recent surge that has seen it climb to US$43,000.
Shell PLC has become the latest oil company to sever ties with Russia following the country’s invasion of Ukraine, in a move affecting US$3bn worth of assets.