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Russian stocks tumble as US imposes sanctions

Russia's stock market crumbles, hitting funds exposed to the country, as US imposes sanctions on host of oligarchs and government officials.

 
Russian stocks tumble as US imposes sanctions

Russian stocks have tumbled after the US imposed sanctions on a host of oligarchs and the companies they run, alongside a number of government officials.

Russia's Moex stock market fell 7.6%, hitting funds exposed to the country.

The JPMorgan Russian Securities (JRS ) investment trust tumbled 10.1% to 470p, while Baring Emerging Europe (BEE ), which holds 62% of its portfolio in Russia, was down 2.8% at 764p. BlackRock Emerging Europe (BEEP ), which features a 56% exposure to the country, fell 5.2% to 334.7p.

On the FTSE 100, Russian steel maker Evraz (EVRE) was the biggest faller, down 15.2% at 382p.

Polymetal International (POLYP), a gold and silver producer operating in Russia and Kazakhstan, led the 'mid-cap' fallers, down 10.1% at 652p.

Among the seven oligarchs hit by the sanctions are Oleg Deripaska (pictured), a billionaire aluminium magnate. Any assets the seven have under US jurisdiction have been frozen and US nationals are forbidden from doing business with them.

Shares in Deripaska's London-listed EN+ Group (ENPLq), an aluminium and power producer, fell 34% to $6.35.

Aluminium giant Rusal (0486.HK), which Deripaska also controls, saw half its value wiped out in overnight trading in Hong Kong.

The US Treasury said the sanctions were linked to Russia's actions in Crimea, Syria and Ukraine and its interference in western democracies.

'The Russian government operates for the disproportionate benefit of oligarchs and government elites,' said Treasury secretary Steven Mnuchin.

'Russian oligarchs and elites who profit from this corrupt system will no longer be insulated from the consequences of their government's destabilizing activities.'

6 comments so far. Why not have your say?

FrankFrank

Apr 09, 2018 at 17:04

I think it is farcical that the US, where 62 families own 50% of the World's wealth, has now appointed itself as policeman for even distribution, like our friends the Saudis for example.

Oh ye pharisees !

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JohnR

Apr 09, 2018 at 17:56

It is somewhat comical, what is the profligate orange if not an oligarch himself.

Do as I say not as I do.

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CT

Apr 09, 2018 at 18:36

Women and children have died in Syria. We should follow the US example

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JohnR

Apr 09, 2018 at 19:03

Satire at it's finest.

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CT

Apr 09, 2018 at 19:24

JohnR - not sure what you mean. Please explain

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JohnR

Apr 09, 2018 at 19:49

The hypocrisy is suffocating, that's what I mean, though why that's not blindingly obvious is a concern.

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