The ruble is in trouble
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The Russian stock market collapsed by more than 8% on the back of news about the crisis around Ukraine.
While Russia is deciding whether to recognize the so-called “LPR” and “DPR”, the Russian economy is collapsing at a record pace. Euro and dollar are growing rapidly on the Moscow Exchange on Monday. The Russian stock market collapsed by more than 8% on the back of news about the crisis around Ukraine.
All because of Ukraine
The euro exchange rate rose by 1.4% and rose above 89 rubles for the first time since January 27, while the dollar rose by 1.2% and for the first time since February 14 overcame the mark of 78 rubles, after which it began to trade towards 79 rubles. The ruble is falling amid a sharp deterioration in the mood of the players after it became known about the increase in military tensions.
The downtrend in the Russian market began in October and since then has been constantly fueled by the deterioration of the geopolitical situation and the aggravation of the situation around Ukraine. Promsvyazbank experts note that the sharply increased “country risk” indicator against the backdrop of growing geopolitical tensions around Ukraine again acted as a key factor in the ruble’s decline.
collapse
The dollar rose above 79 rubles amid news about the possible recognition of the “DNR” and “LNR”. Euro rose above 90 rubles. The scale of the fall of Russian stock indices exceeded the collapse of March 2020.
Earlier, representatives of the self-proclaimed republics announced new shelling from the Ukrainian side, and the Russian FSB said that a projectile launched from the territory of Ukraine in the morning completely destroyed the place of duty of Russian border guards 150 meters from the border. Oleksiy Danilov, Secretary of the National Security and Defense Council of the National Security and Defense Council of Ukraine, commented on this statement: “We have nothing to do with these shellings.”
Policy impact
On the eve of the Elysee Palace said that at the suggestion of French President Emmanuel Macron, the US and Russian presidents agreed in principle to hold a bilateral summit, the agenda of which should be determined on Thursday by Foreign Minister Sergei Lavrov and US Secretary of State Anthony Blinken. On this news in the morning, the Russian markets and the ruble grew.
Then the trend changed. Kremlin spokesman Dmitry Peskov said there are no concrete plans for a meeting between Putin and Joe Biden yet, although a summit is possible if the heads of state deem it appropriate.
Peskov’s answer to the question of Russia’s possible military assistance to the self-proclaimed republics of Donbass could have negatively affected the markets, media outlets say. “I leave without comment,” he said.
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