Russian currency in free fall

 Bloomberg:

The ruble tumbled the most since March 2020 after President Vladimir Putin recognized self-declared separatist republics in east Ukraine, deepening a standoff with the West.

The ruble weakened beyond 80 per dollar during Putin’s televised address to Russians late Monday and stocks slumped as much as 18% in evening trading. Earlier in the day, the benchmark MOEX Russia equity index closed its main trading session down 11%, the biggest drop since Russia’s annexation of Crimea in March 2014.

Russia’s stocks and the ruble were the worst performers globally on Monday. It’s unclear for now what Putin’s decision means for the risk of a Russian invasion of Ukraine that the U.S. and NATO have warned about for months. Russia has repeatedly denied such plans.

The equity selloff extended into Asia on Tuesday, with regional stocks and the U.S. index futures sliding. Shares of United Co Rusal International PJSC in Hong Kong plunged as much as 22%, their biggest drop since April 2018. The aluminum company gets about 25% of its revenue from Russia, according to data compiled by Bloomberg.
...

I suspect that this is just the beginning of losses for Putin's government in response to his aggression in Ukraine.  Putin has never been able to articulate a casus belli that makes any sense to those outside his immediate circle with regard to his Ukraine ambitions.   He may also see reduced purchases of Russian oil and gas.

See, also:

E.U. To Launch Sanctions Against Those Involved In Russia’s Decision To Recognize Separatist Regions

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