Stocks in Russia Hit 17-month Low

MOEX decreased to 2450.00 Index Points, the lowest since December 2024. Over the past 4 weeks, MOEX lost 7.97%, and in the last 12 months, it decreased 11.94%.

The MOEX Russia Index fell to 2,550 in October, testing year-to-date lows as more sanctions against Russia pressed the outlook for major energy companies and Moscow's fiscal stability. Rosneft and Lukoil plunged to two-year lows after the US sanctioned both oil giants, which together account for half of Russian oil exports and a large portion of the federal government's budget revenue. Indian refineries noted that sanctions from the US government are likely to halt oil orders from Reliance and state processors, magnifying the impact of the measures. Similarly, Novatek and Gazprom sold off the EU was set to prohibit members from buying Russian LNG as of 2027. On top of that, equities were pressured by the signal of restrictive policy by the Bank of Russia in its latest decision, despite coming with a small rate cut. Russian stocks had declined sharply since August as higher inflation and a lower public spending outside of defense dented domestic economic activity.

The MOEX Russia Index sank to the 2,650 mark on Thursday, close to the year-to-date low of 2,540 from on October 14th as additional sanctions against Russia pressed the outlook for major energy companies and Moscow's fiscal stability. Rosneft sank 5% to a two-year low and Lukoil dropped 4% after the US sanctioned both oil giants, which together account for half of Russian oil exports and a large portion of the federal government's budget revenue. Indian refineries noted that the sanctions and additional pressure from the US government are likely to halt oil orders from Reliance and state processors, magnifying the impact of the measures. In the meantime, Novatek dropped 3.5% and Gazprom lost 2% as the EU was set to prohibit members from buying Russian LNG as of 2027. Russian stocks had declined sharply since August as higher inflation, high interest rates by the CBR, and a lower public spending outside of defense dented domestic economic activity.