The Russian stock market showed its largest decline in the last three years following loud statements from the Russian Foreign Ministry regarding the effective destruction of relations with the United States and the lack of prospects for ending the war against Ukraine.
This is reported by Business • Media
Statements from the Russian Foreign Ministry Led to a Record Crash
Deputy Foreign Minister Sergey Ryabkov stated that relations between Russia and the United States are at their lowest point, and attempts to establish a dialogue have yielded no results. The official also emphasized that the momentum following the personal meeting between Vladimir Putin and Donald Trump in Alaska has completely dissipated.
“The momentum following the meeting between Vladimir Putin and Donald Trump in Alaska has dissipated.”
Index Dynamics and Losses of Russian Companies
On Wednesday, the Moscow Exchange index fell to its lowest level since December of last year, plummeting by 4.05% compared to Tuesday’s closing. This marks a record since September 2022. Among the largest losses were shares of Gazprom (–4.1%), Sberbank (–4.9%), VTB (–4.7%), Rosneft (–2.5%), Severstal (–4.9%), and Aeroflot (–5%).
The decline in indices has been ongoing for the fifth consecutive week. Compared to February, when negotiations between Putin and Trump began, the market capitalization has fallen by more than 22%, equivalent to ₽1.3 trillion.