Karin Strohecker and Sujata Rao

LONDON, (Reuters) – Russia’s stock markets are “uninvestable” due to strict new Western sanctions. The central banks have also imposed trading restrictions. A top MSCI executive stated Monday that removing Russian listing from equity indexes is a “natural next move”.

Dimitris Melas of MSCI, head of index research, and chairman of the Index Policy Committee said that “it would not make a lot sense for us to continue including Russian securities if investors and clients cannot transact in this market.”

It is evident to everyone that today’s market is difficult to trade, and it is not investable.

Melas indicated that Melas could immediately start a consultation of investors. The result could be published within days, along with any action taken.

MSCI declared on Thursday it would freeze the index and not implement any changes to Russian securities that it previously announced in February’s review.

Melas stated that the next natural step we can potentially take – while we are still waiting to make a decision – is to remove MSCI Russia from our indices or Russian securities.

Russia’s weighting in MSCI’s emerging markets benchmark is 3.244%, and the weighting in the international benchmark provider of 30 bps is around 30.