You are here: Home » News-IANS » Politics
Business Standard

New US sanctions rattle Russian stock market, ruble

Topics
Business Finance

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

The US Treasury 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 Oleg Deripaska and his Rusal company, the world's major primary aluminum producer.

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 Hong Kong Stock Exchange on Monday. In Moscow its shares fell by more than 25 per cent by Monday afternoon.

Russian Prime Minister Dmitry Medvedev 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 Russia 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, energy 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.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

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