UK bans more Russia GDRs, firms from insurance market over Ukraine

Britain took more action against Russian companies on Thursday as they were banned from the insurance market and suspended on the London Stock Exchange.

The Treasury said Russian companies in the aviation or space industry would be blocked from accessing British-based insurance or reinsurance services directly or indirectly.

"The UK government will bring in legislation to prohibit UK-based insurance and reinsurance providers from undertaking financial transactions connected with a Russian entity or for use in Russia," it said in a statement.

"Further details of the legislation will be available in due course."

Meanwhile, the London Stock Exchange said it had suspended trading in global depository receipts (GDRs) of several Russia-based companies including Rosneft, Sberbank, Gazprom, En+ and Lukoil.

The LSE has 24 companies incorporated in Russia trading on its bourse, of which 17 are suspended. GDRs are negotiable certificates issued by a bank which represent shares in a foreign company but traded locally.

"Further to recent sanctions in connection with events in Ukraine, in light of market conditions, and in order to maintain orderly markets, the London Stock Exchange has suspended the admission to trading of the instruments ...with immediate effect," the LSE said in a statement.

The moves are part of a sanctions regime imposed on Moscow over its invasion of Ukraine, including denying seven Russian banks from the SWIFT financial messaging system.

On Tuesday, the LSE said it would halt trading in the GDRs of Russia's VTB Bank.