By Ben Edwards
MSCI Inc. said it is considering removing VTB Bank's ruble
shares from its Russian index after the U.S. Treasury slapped the
bank with sanctions restricting its access to U.S. financial
markets.
MSCI said it was considering the move on concerns that if VTB
issues new equity, it could potentially lead to some market
participants trading the shares in the secondary market, breaking
those sanctions.
The sanctions prohibit U.S. investors from providing certain
firms with financing through new equity or new debt that matures in
longer than 90 days.
MSCI said another proposal is to maintain VTB Bank in the MSCI
Russia index until the first issuance of new shares. The index
provider is seeking feedback from market participants and will
announce its decision on Aug. 8.
VTB's Russian peers Rosneft and Novatek GDR won't be removed
from the index, MSCI said.
Also Thursday, MSCI said it was launching a new series of
composite indexes that will exclude Russia for investors that want
to avoid exposure to Russian securities.
Write to Ben Edwards at ben.edwards@wsj.com