‘Putin-Crash’: Moscow Stock Exchange signs the worst session since the 2008 collapse
The spiral of tension regarding the situation in Ukraine is once again impacting the market, with the main European stock markets trading lower. But, the most punished values are those of the Moscow Stock Exchange, which suffers its biggest crash since October 2008 and the red numbers of the worst day of the pandemic in 2020.
The price of the ruble against the dollar also sinks about 3% and the official exchange rate is 80 rubles per dollar.
Specifically, the MOEX index, denominated in rubles, has fallen by 10.5% at the close and is trading at 3,036 basis points, which approximates the fall in the year to 20%.
For its part, the RTS index, denominated in dollars, fell 13.2% in the session and trades at 1,207 integers, which represents its biggest drop since October 2008 after surpassing the 13% drop that it gave in March of 2020 loss also greater than 20% so far in 2022.
Among the values with sharp falls are the banks, which could be affected by the package of sanctions that the US is preparing if Russia finally invades Ukraine. Specifically, according to Reuters, the Joe Biden government plans to prohibit US financial institutions from processing transactions for the main Russian banks.
As a consequence, the price of Sberbank, the largest bank in the country and in Eastern Europe, sank 14.5%, while VTB Bank fell by nearly 12.5%. Other banks affected by the escalation of tension between Russia and the West would be the state bank VEB or Gazprombank, a subsidiary of the Russian gas company Gazprom.
As for the price of the ruble in the foreign exchange markets, the euro and the dollar strengthened by 1.88% and 1.6% respectively against the Russian currency.
The Russian Armed Forces have indicated this Monday that they have killed five members of an alleged “sabotage” group from Ukraine and whose objective was to cross the border into Russia.
Sources from the Southern Military District have indicated that the incident has occurred in the midst of an escalation of clashes in the Donbas region, in eastern Ukraine, where there have been recent bombings and clashes between pro-Russian separatists and Ukrainian forces.
Despite the increase in tensions, the French Presidency has assured this Monday that the summit between the presidents of the United States and Russia, Joe Biden and Vladimir Putin, respectively, is “possible”.
The White House has confirmed in a note that Biden has accepted “in principle” this face-to-face with Putin, which would aim to reduce tensions around Ukraine, but the Kremlin has been more elusive. Putin’s spokesman, Dimitri Peskov, “does not rule out” the possibility of contacts, but for now he prefers not to talk about preparations already underway, according to the Sputnik agency.