Russian Stock Market Drops After Sanction Increase

Russian shares have fallen sharply after US and EU bolstered sanctions against Russia over its alleged support for separatists fighting in Ukraine.

The sanctions targeted major banks, defence firms and energy companies including Rosneft.

The RTS stock index, which is based on the share prices of 50 of Russia’s most prominent firms, fell by more than 4%.

Prime Minister Dmitry Medvedev called the sanctions “evil” and said that Russia might increase defence spending.

The boosted sanctions were imposed against Rosneft and fellow energy company Novatek, plus two banks: Gazprombank, and the state-owned Vnesheconombank.

Shares in energy giant Rosneft fell by over 5% in Thursday morning trading, and Novatek shares lost 11% in value.

The Moscow-based Micex stock exchange, which trades in roubles, fell by over 2.6%.

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