Russian stocks sunk to levels not seen since 2017 on Monday, weighed by a global market selloff, threats of more sanctions and signs of continued unrest after last week’s partial mobilization.
The MOEX , a closely watched benchmark of Russian stocks, fell as much as 10% on Monday, and was last down around 6% to 1,953.16, and marking the weakest level since June 2017, according to Trading Economics. The index is trading under 2,000 for the first time since February, while the daily drop is the worst since Russia invaded Ukraine in late February.
Tensions have been rising around Russia’s widely condemned referendums, which are taking place in four Ukraine territories held by Russian forces. That’s as a partial draft announced by the governmetn last week has sparked protests and detentions across the country. A gunman opened fire at a recruitment center in Siberia, wounding one person on Monday, the New York Times reported.
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Meanwhile, some European countries are pushing for harsher sanctions on Russia, with Poland and the Baltic states demanding new measures such as targeting luxury goods and Russian IT, cybersecurity and software, according to the Financial Times. Germany wants a ban on Russian uranium imports and a stoppage of finance for metal and rare-earth mines in the country via European companies.
Russia’s MOEX index started the year at 4,091, but has lost more than 50% of its value amid sanctions that have been hitting the country since Russian President Vladimir Putin sent troops into Ukraine earlier this year.
Foreigners are banned from selling their Russian stocks. Depository receipts in the U.S. and the U.K. have been halted since the invasion.
The Russian ruble has recovered ground this year after slumping against the dollar in the fallout from western sanctions due to Moscow’s invasion. The ruble
USDRUB,
was trading steady at 57.82 and has gained nearly 23% year to date.
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