23.10.202510:54:31UTC+00Russian Stocks Plunge Toward YTD Low

The MOEX Russia Index fell to 2,650 on Thursday, nearing the year-to-date low of 2,540 observed on October 14th, as further sanctions against Russia clouded the prospects for major energy firms and Moscow's fiscal health. Rosneft plummeted by 5% to a two-year low, and Lukoil decreased by 4% following U.S. sanctions on both oil giants, which collectively represent half of Russian oil exports and significantly contribute to the federal budget revenue. Indian refineries indicated that these sanctions, along with additional pressure from the U.S. government, are expected to curtail oil orders from Reliance and state processors, amplifying the consequences of the measures. Concurrently, Novatek fell by 3.5%, and Gazprom declined by 2% as the EU prepared to ban its members from purchasing Russian LNG by 2027. Russian stocks have been on a downward trajectory since August due to inflationary pressures, high interest rates set by the Central Bank of Russia (CBR), and decreased public spending outside the defense sector, all of which have negatively impacted domestic economic activity.