The MOEX Russia Index fell to below the 3,150 mark from the nine-month high of 3,326 on February 25th as markets reconsidered the ease and speed in which domestic companies may return to the global financial markets. US President Trump threatened additional banking tariffs on Moscow should Russia delay ceasefire deals after the country struck Ukrainian gas infrastructure, a change in rhetoric from the previous friendly tone with the Kremlin. This magnified the impact of lower demand for Russian oil and gas, driving Lukoil, Rosneft, and Gazprom to plunge in March. Stocks had rallied in February after the new US Presidential administration adopted favorable relations with Russia and pressed Ukraine on accepting Russian terms for a ceasefire in their war. The developments ramped up expectations that the US would expedite the removal of tariffs on Russia, reestablish economic ties, and aid its return to global financial markets, which would trigger sharp inflows of capital into Moscow.
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