The SGX RegCo has suspended the trading of Gazprom’s GDR quoted on the Singapore Exchange, following Singapore’s sanctions on some Russian entities owned or controlled by its government.
Gas producer Gazprom was at one point one of the world’s most valuable companies. It was listed on the Singapore stock exchange in 2014, supposedly to tap better access to Asian investors following a multibillion-dollar gas supply deal with China.
As announced by the Ministry of Foreign Affairs on March 5, Singapore has put in place prohibitions against entering into transactions or arrangements, or providing financial services that facilitate fund raising by entities owned or controlled by the Russian government.
According to SGX RegCo, the prohibitions apply to buying and selling new securities, providing financial services that facilitate new fund raising by, and making or participate in the making of any new loan to the above entities.
SGX RegCo notes that the Russian government is the ultimate controlling party of Gazprom and has a controlling interest (including both direct and indirect ownership) of over 50% in it.
“Accordingly, to ensure that the market is fair, orderly, and transparent, and the Exchange does not act contrary to the interests of the investing public, the Exchange will suspend the admission to trading of the PJSC Gazprom GDR pursuant to Listing Rule 1405(1)(k),” SGX RegCo says.
See also: Russia resumes Ukraine grain-export deal in abrupt reversal
“The Exchange is monitoring developments and will update the market of any material information.”
see also: Regulator's Column: What SGX expects of issuers in respect of sanctions-related risks, subject or activity
