Ruble, Russian stocks make big losses after Putin sends troops to Ukraine


Moscow — The ruble rebounded from its almost two-year lows on Tuesday after Britain announced its first but relatively modest sanctions after Moscow recognized two secession areas in eastern Ukraine as independence, Russia. Stocks of major banks in Moscow soared.

The Louvre on Monday suffered the biggest one-day decline since the COVID-19 pandemic, after President Vladimir Puttin admitted that the two regions were independent, but the first penalty was so much. Proved to be harmless, it has regained some position in volatile trade. Rather than be afraid.

The UK has imposed sanctions on five Russian banks and thirty millionaires, but could not target major lenders such as state-owned Sberbank and VTB.

Shares of Russia’s largest lender, Sberbank, surged 7.9% as of 1517 GMT, while shares of VTB, the second bank, rose 4.7%.

Other possible sanctions could target major financial institutions, block access to Russia’s electronics supply, or curb the operation of energy companies.

The ruble rose 0.8% to $ 79.13 after falling earlier to the last seen level of 80.97 on March 23, 2020.

Its resurrection only allows Russia to independence of the region within the boundaries currently dominated by Moscow-backed separatists, and Ukraine’s President Volodymyr Zelensky sees a major conflict with Russia. It happened because I disregarded.

Peter Kistler, Emerging Markets Fund Manager at Thorium Capital, said:

“We are not clear, but it gives the way to deescalation.”

The Central Bank of Russia said it was ready to take all necessary steps to support financial stability, and analysts said currency market intervention to limit the loss of the ruble was one of the table options. Said that.

The ruble was 0.5% stronger against the euro at 89.75, a hit ahead of 91.4475, the weakest level since April 2021.

us-dollar sign
A woman passing by a board showing the US dollar sign in St. Petersburg, Russia, February 22, 2022. (Anton Vaganov / Reuters)

Sale of russia

The Russian market acknowledges Putin’s move, the independence of the two regions collectively known as Donbas, and the Western move to send troops to “maintain peace” may foreshadow a major war. It plummeted into Western concerns.

“It was nothing but yesterday’s disaster. The news that the conflict with Ukraine in Donbas could heat up has triggered a major sale of assets of all kinds,” BCS Global Markets said in a note. I am saying.

The sale also hit Russia’s neighbors. The Ukrainian currency, the hryvnia, recorded a record low of 29.1198 against the dollar. Meanwhile, Kazakhstan’s tenge fell from around 427 on Monday to 438.08 against the greenback.

Britain’s Prime Minister Boris Johnson said on Tuesday that Russia is heading for a “Pariah state” and Kremlin is laying the groundwork for a full-scale invasion of Ukraine, and the world is preparing for the next phase of Putin’s plan. He said he had to.

Russia’s OFZ bonds have fallen further, with 10-year OFZ bond yields inversely proportional to price, the highest since early 2016.

“The market situation is really tense. Non-residents may cut positions (at OFZ) and buy foreign currency instead. Ruble positions will depend on sanctions,” he said.

OFZ bonds were popular among foreign investors due to their relatively high yields, but non-residents have reduced their exposure to Russia in recent months.

Russia’s stock index lost about a quarter of its value in just five days, but tried to recover on Tuesday.

The dollar-denominated RTS index rose 2.1% to 1,233.9 points after reaching its lowest level since November 2020, 1,075.98. The ruble-based MOEX Russia index rose 2.1% to 3,099.2 points.

Reuters

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