Sberbank ADRs Drop as EU Measures Hit State-Owned Lenders - Bloomberg

Sberbank ADRs Drop as EU Measures Hit State-Owned Lenders - Bloomberg:



"OAO Sberbank (SBRCY) fell in New York yesterday, capping its biggest monthly drop in two years, as the European Union banned the state-controlled lender from selling bonds or shares in the 28-nation bloc.



American depositary receipts of Russia’s biggest bank, which holds about half of the country’s deposits, slumped 2 percent to $8.28 in New York. Sberbank tumbled 19 percent in July, the steepest drop since May 2012. The Market Vectors Russia ETF (RSX), the largest U.S. exchange-traded fund tracking the nation’s companies, slid 8.7 percent in the month, the most since January. Futures in the dollar-denominated RTS index lost 0.5 percent to 120,350 in U.S. hours yesterday.



The EU, Russia’s major trading partner, joined the U.S. in hardening its stance against President Vladimir Putin’s support for separatists in Ukraine. The rising tension has spurred a $21.9 billion reduction in Sberbank’s market capitalization this year, data compiled by Bloomberg show. Even before the latest measures, the Russian government expected the $2 trillion economy to expand at the slowest pace since 2009."



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