U.S. imposes sanctions on Moscow Exchange: KASE issues statement
The press service of the Kazakhstan Stock Exchange (KASE) commented on the information about the OFAC (Office of Foreign Assets Control, a division of the U.S. Department of Treasury responsible for foreign assets control) sanctions imposed on PJSC “Moscow Exchange” (MOEX), as reported by a Kazinform News Agency correspondent.
As of June 1, 2024, MOEX owns 13.1% of KASE's issued shares.
According to Executive Order 14024, issued by OFAC, being on the SDN list entails a risk of blocking sanctions against entities that are directly or indirectly controlled by persons on the SDN List, individually or jointly with other sanctioned entities, owning 50% or more of the shares/interests.
“KASE is not one of such entities, and the restrictions do not affect the operations of the Exchange and KASE Clearing Center. Therefore, the Kazakhstan Stock Exchange and KASE Clearing Center continue to operate normally. Trading, clearing, and settlements will be conducted according to the standard regulations. KASE will consider continuing business relationships with MOEX, taking into account the sanctions restrictions,” the statement said.
Later today, following a Senate meeting, Timur Suleimenov, the Governor of the National Bank of the Republic of Kazakhstan, stated that currently, no significant movements of the ruble, either inflows or outflows, are anticipated as a result of these sanctions.
“We do not expect any significant movements. Given that Russia has been under sanctions for a long time - since 2022, they have various platforms, besides the exchange, where the ruble-dollar pair is traded. As far as we understand, they are now transitioning to these alternative platforms, therefore, we do not see a significant impact,” added Timur Suleimenov.
