Two mining companies operating in Russia are expected to exit the FTSE 100 index of the London Stock Exchange, as Russia’s intervention in Ukraine caused a selloff in Russian assets.
Steel company Evraz and gold mining company Polymetal International are likely to be removed from the index after their shares collapsed after the Russian invasion of Ukraine, a Hargreaves Lansdown analyst said.
The United States and the European Union have hit Moscow with a wave of sanctions against a number of individuals, companies, and institutions, prompting the sale of assets centered on Russia.
Evraz has fallen 60% since the beginning of last week, while Polymetal has fallen 79%.
“After Russia invaded Ukraine, and after the imposition of sanctions on Moscow, the fortunes of these operations have been dramatically reversed,” analysts said.
The changes in the FTSE 100 index will be determined by the closing prices on Tuesday, with the final decision to be announced on Wednesday after the closing of the market.
Source: Capital
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