European financial institutions turn their backs on Russia

The unexpected action puts the German bank side by side with large US entities Goldman Sachs and JP Morgan Chasewho left Russia after the February 24 invasion, and will increase pressure on their opponents to continue severing ties.

Deutsche has argued that it needs the support of multinational companies doing business in Russia. But on Friday afternoon in Frankfurt, the bank suddenly changed course.

“We are in the process of winding down our remaining business in Russia while helping our non-Russian multinational customers wind down their operations,” the bank said. “There will be no new business in Russia.”

A spokesman told Reuters on Monday that the Zurich insurance company is no longer accepting new clients in Russia and will not renew existing business.

Asset managers also said they will not make new investments in Russia and many Russia-focused funds have been frozen due to their inability to operate in the wake of Western sanctions and Moscow’s countermeasures.

The British London Stock Exchange group said, late on Friday, that it has suspended all products and services to all customers in Russia, days after suspending the distribution of news and comments in the country following new laws from Moscow.

“LSEG confirms that it will suspend all products and services for all customers in Russia, subject to any regulatory requirements,” the company said in a statement.

“We continue to support our employees in the region. We are also reaching out to our customers outside Russia who rely on us for data and pricing information within Russia. We are evaluating alternative options to continue providing these services,” he added.

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Index provider FTSE Russell said Monday it would remove four UK-listed companies focused on Russia, including Roman Abramovich’s Evraz, after several brokers refused to trade their shares.

The company said in a statement that it will remove Evraz, Polymetal International, Petropavlovsk and Raven Property Group from all FTSE indexes during its March review.

By Tom Sims, Simon Jessup and Paul Arnold for Reuters

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