Russian Shares Fall After New Western Sanctions

Russian shares fell sharply on Friday as investors weighed the impact of western sanctions over Ukraine.

The MICEX index, which is priced in roubles fell 3% and the RTS, which is priced in dollars fell 3.6%.

The fall comes after US President Barack Obama on Thursday said sanctions might be extended to key parts of the Russian economy if Russia took further action in Ukraine.

Russia’s mining, defence and natural resources sectors could all be targets.

The country’s financial services industry is already under pressure following the introduction of asset freezes and visa bans by the US against high ranking Russian officials.

As a result Visa and Mastercard have also stopped providing services to two Russian banks, St Petersburg bank Rossiya and SMP Bank.

Bank Rossiya said the card payment services had stopped services for payment transactions for their clients.

Visa and Mastercard confirmed they had stopped providing services to SMP Bank without providing notification.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza