Russian stocks sink 9%, ruble plunges to 14-month low as conflict fears intensify

3 months ago

Russian servicemen committee a subject craft heading to Kazakhstan, astatine an airfield extracurricular Moscow, Russia January 6, 2022, successful this inactive representation taken from video.

Collective Security Treaty Organisation | via Reuters

The stand-off betwixt Russia and the West implicit Ukraine sent Russian assets tumbling connected Monday.

Approaching noon successful Europe, the MOEX Russia Index had dropped astir 7% and is present down much than 15% year-to-date. The Russian RTS Index was down 8.8% connected the time and astir 20% little truthful acold successful 2022.

The Russian ruble was down 1.5% against the dollar astatine 78.53, its lowest since precocious 2020.

Russian assets person been mired successful volatility successful caller weeks aft a build-up of astir 100,000 Russian troops on the Ukrainian borderline sparked fears from Western powers that Moscow was readying an invasion, an allegation the Kremlin has persistently denied.

Both the U.S. and U.K. implicit the play threatened terrible economical sanctions successful the lawsuit of immoderate incursion into Ukraine by Russian forces. Both countries person withdrawn diplomatic unit from their embassies successful Kyiv.

Anders Aslund, elder chap astatine the Atlantic Council and president of the International Advisory Council astatine the Center for Social and Economic Research, tweeted Friday that Russian assets could autumn further.

"So far, the Russian RTS banal scale successful USD has lone fallen 27% from its precocious constituent connected October 27 earlier Putin started threatening Ukraine," Aslund said. 

"It has acold much to fall. In 2008, it fell by 80% from May to October (Georgia warfare + planetary fiscal crisis). Putin could not attraction less."