Russian Stocks Collapse To Annual Bottom

The market reacts to Dmitriev's failed visit to the US.

The Russian stock market accelerated its fall after the conclusion of the visit to the United States of RDIF head Kirill Dmitriev, which brought no concrete results and turned out to be an intensification of nuclear rhetoric instead of reconciliation with the administration of Donald Trump, writes The Moscow Times.

The Moscow Times index, which lost 6.5% last week, by 14.50 in Minsk fell another 3.2% to 2457.87 points, the lowest value since December last year.

The main reason for the fall is geopolitics, writes investment banker Evgeny Kogan: "There is no light here yet. All the initiatives that have been taken by the "peacemakers" have not brought any result. The situation is close to a deadlock."

The downward race among blue chips is led by the largest oil companies that have fallen under blocking U.S. sanctions. Rosneft shares are down 5.6 percent and are at their lowest since March 2023 at 368.4 rubles apiece. "Lukoil" after collapsing by 12.2% last week loses another 6.5%. Its quotations fell to 5242 rubles per share - the lowest since July 2023.

Since the sanctions were imposed, the two companies, which account for half of oil production in Russia, have collectively lost more than 900 billion rubles of capitalization, or $11.5 billion.

Sber shares are down 1.3%, VTB - 1.1%, Gazprom Neft - 4%, Nornickel - 4.4%, Rostelecom - 3.6%.

The fall in the market is the result of the continuing aggravation of the geopolitical situation, states Freedom Finance Global analyst Vladimir Chernov. Following the sanctions against Rosneft and Lukoil, Dmitriev, the Kremlin's key negotiator on Ukraine, flew to Washington.

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