LONDON (Reuters) - The London Stock Exchange on Tuesday said it would suspend trading in the global depositary receipts (GDRs) of Russian aluminum and power producer En+ due to U.S. sanctions.
The LSE said the GDRs, which allow the company to trade alongside domestic stocks, would be halted at 1615 GMT on Wednesday.
“The exchange will continue to monitor the situation and is in communication with the UK authorities,” the LSE said in a notice on its website.
The London-listed GDRs sank 54 percent in two sessions after the United States on April 6 imposed new sanctions on Russian entities including En+ and aluminum magnate Oleg Deripaska.
En+ owns a stake in Russian aluminum producer Rusal, a major target of the sanctions.
Reuters data showed En+ GDRs last traded on April 9.
According to one source, holders of the GDRs have not been able to sell because designated clearing house Euroclear is not settling the trades.
In its annual results on April 30, En+ said Deripaska held 66.08 percent of the company through two holding companies as of Dec 31.
En+ said in a statement on Friday that Deripaska had agreed in principle to reduce his stake in En+ to less than 50 percent.
Reporting by Pratima Desai and Helen Reid; editing by Alison Williams and Jason Neely