The White House slams the reopening of the Moscow Stock exchange as a 'charade', with Russia banning foreigners from selling
- The White House slammed the restricted reopening of the
Moscow Stock Exchange, calling it a "charade."
- Trading resumed in Moscow after a monthlong pause, and the benchmark index rose as much as 12% before ending up 4%.
The White House has harshly criticized the limited reopening of the Moscow Stock Exchange, calling it a "charade" and saying it highlights
Russia resumed stock trading on the Moscow exchange Thursday for the first time in a month. The government shut the market on February 25, the day after Russia's invasion of Ukraine triggered a dramatic fall of up to 50% in stocks.
However, trading only restarted for 33 of the market's biggest companies. Foreigners were banned from selling stocks — preventing major US investors from slashing their exposure to the country — and the session was shortened to four hours.
"What we're seeing is a charade," White House economic advisor Daleep Singh said in a statement Thursday.
Singh, who is US deputy national security advisor for international economics, is credited with designing the US sanctions on Russia.
"This is not a real market and not a sustainable model — which only underscores Russia's isolation from the global financial system," Singh added.
Assets linked to Russia around the world have fallen sharply as tough Western sanctions target the country's economy. Russian shares listed on the London Stock Exchange fell as much as 97% in a day earlier in March, before trading was suspended.
Yet Moscow's benchmark Moex stock index rose as trading resumed in the city Thursday, climbing as high as 12% before paring its gains to finish 4.4% higher.
On top of the restrictions on trading, the Russian government has prepared to deploy $10 billion from the country's sovereign wealth fund to prop up its financial
Singh condemned the potential intervention, saying the Kremlin would be "artificially propping up the shares of companies that are trading."
"The United States and our allies and partners will continue taking action to further isolate Russia from the international economic order as long it continues its brutal war against Ukraine," he added.
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