Putin-Trump talks tank Russian stocks
Russia's stock market fell following negotiations between Vladimir Putin and Donald Trump.
The talks, which lasted half as long as planned, failed to produce an agreement on Ukraine, according to Trump, as reported by The Moscow Times.
Despite Trump's statement that he had decided to postpone the imposition of harsh sanctions against Russia for two or three weeks, the Mosbirzha index dropped by 2% in Saturday's trading, wiping out 130 billion rubles in capitalization ($1.6 billion).
By 11:07 a.m. (MSK), Gazprom shares had fallen 2.9%, Rosneft 2.6%, Gazprom Neft 2.2%, and Sovcomflot nearly 3%. State-owned banks, Sberbank and VTB, fared slightly better, posting losses of 1.5%.
Metallurgical company stocks also lost more than 2%: Severstal dropped 2.5%, NLMK 3%, and GMK Norilsk Nickel 2.6%. Aeroflot shares also slumped 2.9%.
The ruble also eased on the forex market. The dollar gained 0.5% against the ruble, reaching 80.15, while the euro rose 0.9% to 93.76.
"The market was expecting more," notes investment banker Yevgeny Kogan. "An end to the fighting, the conclusion of some agreements, the signing of protocols of intent, and discussions about lifting sanctions." But none of this happened. According to Axios, Putin refused a temporary ceasefire and prefers a comprehensive peace agreement that considers all his demands.
Translation by Iurie Tataru
