On Monday, June 22, the MOEX index fell by 4.65%, which was the largest one-day decline since the end of September 2022, when Vladimir Putin announced “partial mobilization.”
This was reported by TMT, Ukrinform reported.
Thus, the Russian stock market, which had already been in the red for 15 consecutive weeks, began the new trading week with its strongest collapse in four years.
At the end of the main session, the index, which covers shares of 46 of Russia’s largest companies, fell to 2,318.2 points – the lowest level since March 17, 2023.
All blue chips without exception ended the day lower: Gazprom fell by 4.4% and updated its lows since the end of 2008, while Rosneft shares suffered their sharpest decline since 2022 – down 7.3% for the day. Novatek, VTB, and Aeroflot lost more than 5%; Lukoil and Rostelecom lost more than 3%.
Investment banker Yevgeny Kogan explained this by saying that “panic selling is already taking place” on the market, with the reasons remaining the same: the absence of negotiations on the Russian-Ukrainian war, the tough stance of the Russian Central Bank, which is keeping the key rate high, as well as frequent Ukrainian attacks on Russian infrastructure, which are triggering a fuel crisis that in turn threatens to drive up inflation. In addition, the United States has officially temporarily lifted sanctions on Iran and granted it permission to trade oil, which promises lower oil prices and will affect export revenues and budget income.
Russian politician Gennady Zyuganov added fuel to the fire by calling for the confiscation of public deposits. “It was after these comments that the sell-off noticeably accelerated, as investors became more concerned about possible administrative pressure on the financial sector and private savings,” said Finam analyst Dmitry Lozovoy.
Since mid-March, when the market began to decline, the MOEX index has lost 20%, and compared with the 2024 peaks, when Vladimir Putin began negotiations with Donald Trump, it has fallen by 30%. “Only geopolitics can radically change the situation, because all other factors are merely consequences of the sanctions and restrictions imposed,” the outlet quotes analysts from Vector Capital as saying.
As reported by Ukrinform, after “fruitful talks” between Tehran and Washington over the weekend in Switzerland, the United States allowed Iranian oil sales until the end of August.
