Russia’s Moscow Exchange to stop trading in dollars after latest US sanctions

Russia’s leading financial marketplace, the Moscow Exchange, said it would cease foreign exchange trading in dollars and euros in response to a major new round of sanctions imposed by the United States on Wednesday.

The exchange also said share trading and money market trades settled in dollars and euros would cease.

The US Treasury Department announced new sanctions on over 300 entities and individuals aimed at cutting off Russia’s access to products and services needed to sustain military production for its war in Ukraine, including dozens of Chinese suppliers.

“Today’s actions strike at their remaining avenues for international materials and equipment, including their reliance on critical supplies from third countries,” said Treasury Secretary Janet Yellen. More than 300 targets are on the list, including the Moscow Exchange.

US officials have expressed increasing concern over Russia’s ability to procure advanced semiconductors, optical equipment and other goods needed to produce advanced weapons systems despite prior sanctions.

The sanctions target third party firms and entities, including dozens of suppliers of electronics in China. The action stops short of imposing secondary sanctions on banks in China and other countries where Treasury has warned that dealings with Russian entities could cut institutions off from dollar access.

But the Treasury did say it was modifying the sanctions on previously targeted Russian banks, including VTB and Sberbank, to include branches and subsidiaries in China, India, Hong Kong, Kyrgyzstan and other locations.