Foreign Companies: Russia

Treasury written question – answered on 11th June 2018.

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Photo of Ian Austin Ian Austin Labour, Dudley North

To ask Mr Chancellor of the Exchequer, if the Government will review the regulations relating to the admission of Russian companies to the London Stock Exchange as a result of plans by that exchange to suspend the trading of shares in EN+ Group.

Photo of Ian Austin Ian Austin Labour, Dudley North

To ask Mr Chancellor of the Exchequer, what powers his Department possesses to prevent the trading of certain shares on the London Stock Exchange on grounds of national security.

Photo of Ian Austin Ian Austin Labour, Dudley North

To ask Mr Chancellor of the Exchequer, whether the Government plans to take action in respect of the listing of Russian state-owned energy company Rosneft on the London Stock Exchange; and if he will make a statement.

Photo of Ian Austin Ian Austin Labour, Dudley North

To ask Mr Chancellor of the Exchequer, if the Government will review the regulations governing the admission of Russian companies to the London Stock Exchange and thereby close the loophole in the sanctions regime that allowed companies such as EN+ to float on that stock exchange.

Photo of Ian Austin Ian Austin Labour, Dudley North

To ask Mr Chancellor of the Exchequer, what plans the Government has to address the listing of Russian state-owned energy company Rosneft on the London Stock Exchange and thereby close the loophole in the sanctions regime that allowed companies such as EN+ to float on that stock exchange.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

The Financial Conduct Authority (FCA) is the competent authority for listings. For listed companies, the UK Listing Authority (a division of the FCA) monitors and enforces compliance with the Listing Rules. The decision as to whether to prevent the trading of certain shares on the London Stock Exchange rests with the FCA and London Stock Exchange. The FCA has no power to refuse a listing for reasons of security or national interests. Under the applicable legislation, the Treasury has no power to intervene to block a flotation on national security grounds.

The Government operates a rule of law based system whereby sanctions can only be applied when clear criteria are met. Any additional legislation on listings on the grounds of national security would need to demonstrably add value to the Government’s existing powers.

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