Russian markets are getting slammed as fresh sanctions take hold

  • Russian markets are getting slammed on Monday, with the country’s RTS index losing more than 11% by 4:2o p.m. BST (11:20 a.m. ET, 6:20 p.m. in Moscow).
  • “The US sanctions imposed on Russia last Friday have caused turmoil in Russia’s markets today, and financial conditions have tightened as a result,” said William Jackson, a senior emerging-markets economist at Capital Economics. “But at this stage, it doesn’t look like there will be a significant impact on growth in the economy as a whole.”
  • While the RTS dropped, another benchmark index, the Micex, fell by as much 8%.
  • “It’s not altogether clear why Russian assets suddenly took this turn for the worse, but it seems likely that there may be growing concerns that other companies could get caught in the net,” Jackson said.
  • The losses are the biggest single-day fall for the index since a set of sanctions imposed in 2014 over Russia’s actions in Crimea.
  • The ruble fell sharply on Monday, losing as much as 3.5% against the US dollar.