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New US sanctions rattle Russian stock market, ruble

IANS  |  Moscow 

New US sanctions imposed on major Russian businesses and their owners sent Russian stocks and the ruble, the country's currency, sharply down on Monday, exchange data showed.

Russia's benchmark stock index was down 11.33 per cent at 04:20 p.m. According to data from Exchange, the was at 59.11 against the dollar, down from $57.88 on Friday, after several months of relative stability, reported.

The announced on Friday it had imposed new sanctions on 38 Russian individuals and entities, including seven business leaders and 17 senior officials, for their alleged "malign activity" around the world.

As a result of the punishment, all assets of the designated persons and entities that are subject to US jurisdiction are frozen, and US persons are generally prohibited from dealing with them.

One of the targets of the new round of US sanctions is Russia's aluminum tycoon and his Rusal company, the world's major primary

On Friday, Rusal issued a statement warning that the new sanctions may result in technical defaults, which pushed its stock down by nearly 50 per cent on the on Monday. In its shares fell by more than 25 per cent by Monday afternoon.

Russian said at a meeting with his deputies on Monday that the new sanctions were aimed at "promoting American commercial interests around the world in defiance of the current trade rules, contrary to the established order".

"Of course, these decisions are unacceptable, and we consider them illegitimate, since they are generally outside the domain of international law," Medvedev said, according to an official transcript of his remarks.

He said reserved the right to respond, "including within existing trade agreements and procedures."

Medvedev also asked the government to work out proposals on providing support to companies affected by the sanctions, including those in the metals, and defense sectors, as well as efficient measures in response to the US move.

--IANS

ahm/vm

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, April 09 2018. 21:34 IST
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