LSE suspends trade in Russia's VTB Bank GDRs

The London Stock Exchange has stopped trade in two global depository receipts (GDRs) for Russian state-owned VTB Bank after they were suspended by the UK's financial regulator in response to sanctions over Ukraine.

"In light of the announcement by BNY Mellon regarding its notice of resignation as depositary for the company's listed depositary receipts and in the absence of an announcement from the company clarifying the situation, the Financial Conduct Authority has decided that it is necessary to temporarily suspend listing of the securities ... in order to protect investors," the LSE said in a statement.

The exchange last Friday suspended membership of VTB Capital, the bank's trading arm, as sanctions were imposed after Russia's invasion of Ukraine.

Britain has introduced a wide range of sanctions against Russian firms and individuals, freezing the assets of all the main Russian banks, including VTB.

VTB, majority owned by the state has interests in banking assets across eastern Europe, with assets totalling £154bn. The UK government is expected to table legislation next week to ban major Russian companies from raising finance on UK markets and to prevent Moscow from raising sovereign debt in London.