(Gov. UK) Investors on the Moscow Stock Exchange will not be able to access certain tax benefits from the UK when trading on the bourse.
Through the HM Revenue and Customs, the UK said it was revoking the status of the recognized exchange for Moscow in a move that further isolates Russia from the global financial system.
The revoked status means that privileges on UK tax reliefs, including an exemption on withholding tax on some bonds, will come to an end. HMRC said that the existing investments will remain protected.
The tax authority said the move responds to Russia’s restrictions which it has imposed on foreign investors after the exchange banned brokers from sales of assets to non-residents.
HMRC said that the Russian central bank’s conduct was contrary to the standards expected of a recognized exchange.
The move now heightens a wave of other sanctions placed on Russia after its invasion of Ukraine. The country has resorted to stiff capital controls to overcome the sanctions.
MICEX is down 2.56%.
