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Allianz and Swiss Re join other financial companies and convert from Russia

  • Allianz says it has stopped insuring new businesses in Russia
  • Swiss Re says it will not renew its business with Russian customers
  • European securities regulators say they will secure an orderly market
  • Deutsche will change position late Friday
  • FTSE Russell is listed in the UK and will issue four Russian-focused shares

FRANKFURT / LONDON / ZURICH, March 14 (Reuters)-Allianz (ALVG.DE) and Swiss Re (SRENH.S) shrink their Russian business on Monday as European financial institutions turn their backs on Russia. He said he was.

Deutsche Bank (DBKGn.DE), Goldman Sachs (GS.N), German insurers and Swiss reinsurance companies have left Russia following the February 24 invasion of Ukraine and subsequent sanctions by the Western government. Joined JP Morgan Chase (JPM.N).

The movement will put pressure on others to follow.

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Allianz said it has stopped guaranteeing new businesses in Russia and is no longer investing in Russia for its own portfolio.read more

Swiss Re said it has not undertaken new businesses with Russian and Belarusian customers and has not renewed existing businesses with Russian customers. In a statement sent by email, Swiss Re said it was reviewing its current business relationship with Russia and Belarus.

The decision follows similar actions by other major European insurers and reinsurers covering large projects such as energy facilities.

Zurich Insurance Company (ZURN.S) will not take on new domestic customers in Russia and will not renew its existing local operations, a spokesman told Reuters on Monday.

Hannover Reinsurance (HNRGn.DE) said last week that new businesses and renewals for Russian and Belarusian customers were pending, but Italian insurer Generali Insurance Company (GASI.MI) came from Russia earlier this month. He said he would withdraw.read more

Insurance broker Willis Towers Watson (WTY.F) also announced on Sunday that it will withdraw from Russia following similar moves by rivals Marsh (MMC.N) and Aon (AON.N).

Many Russian-focused funds have been frozen because asset managers have stated that they will not make new investments in Russia and cannot trade in accordance with the sanctions and countermeasures taken by Russia.read more

ESMA, the European Union’s market watchdog, said Monday that it is coordinating block’s regulatory response to the Ukrainian conflict to ensure that markets continue to function in an orderly manner.

UK pension regulators said the sector is rarely exposed directly to Russia, but it is practically difficult to sell Russian assets.read more

Ukraine said on Monday that it had begun “fierce” negotiations with Russia on the immediate withdrawal of troops and security after both sides reported rare developments in weekend negotiations, despite a ceasefire and Russian bombardment.

Russia calls its actions in Ukraine a “special operation”.

Winding down

Faced with severe criticism from some investors and politicians about its ongoing relationship with Russia, Germany announced late Friday that it would end its business there.read more

This was a surprising reversal by Frankfurt-based lenders who had previously claimed that they needed to support multinationals doing business in Russia.

The London Stock Exchange Group in the United Kingdom also announced late Friday that it would suspend all products and services for all Russian customers a few days after it stopped delivering news and commentary in Russia following the new Moscow law.read more

Index provider FTSE Russell announced on Monday that it will remove four UK-listed Russia-focused companies, including Roman Abramovich’s Evraz (EVRE.L), after many brokers have refused to trade stocks.

Evraz, along with Polymetal International (POLYP.L), Petropavlovsk (POG.L) and Raven Property Group (RAV.L), said in a statement that it will be removed from all FTSE indexes during the March review. I am.

FTSE Russell said it received feedback from external advisory boards and market participants that trading stocks was “strictly restricted” as brokers refused to handle securities and hurt market liquidity. ..

JP Morgan states that most of the projected risks for European banks due to the Russian shock are due to commodity and economic spillover, and the sector will plummet from the end of February.

However, European bank stocks (.SX7P) have recently fallen below lows, rising 3.8% on Monday.

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Additional reports by Mark Jones, Ian Wizards, Joao Manuel Mauricio, written by Carolyn Korn, edited by Catherine Evans

Our Criteria: Thomson Reuters Trust Principles.

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