The Russian stock market reacted with a decline to the results of negotiations between US President Donald Trump and illegitimate Russian President Vladimir Putin.
Points of attention
- The decline in Russian company shares is a result of the negative impact of negotiations between US President Trump and Russian President Putin.
- Shares of major Russian companies such as Gazprom, Rosneft, and state banks like Sberbank and VTB have experienced significant drops in prices.
- The signed law by Trump imposing obligations for new sanctions against Russia if it continues to interfere in the Ukrainian conflict has further intensified the decline in share prices.
Russian stocks plunge over Putin's reluctance to end war against Ukraine
Although Trump said he was postponing the introduction of sanctions against Russia and its trading partners "for two to three weeks," the Mossberg index fell 2% in Saturday trading and lost 130 billion rubles (over $1.6 billion) in capitalization.
Gazprom shares fell by 2.9%, Rosneft by 2.6%, Gazpromneft by 2.2%, and Sovcomflot by almost 3%.
Shares of Russian state banks Sberbank and VTB fell by 1.5%. Shares of metallurgical companies lost more than 2%: Severstal fell by 2.5%, NLMK by 3%, MMC Norilsk Nickel by 2.6%. Shares of Aeroflot fell by 2.9%.
The ruble is also falling on forex: the dollar exchange rate is up 0.5%, to 80.15 rubles, and the euro is up 0.9%, to 93.76 rubles.
US President Donald Trump and Russian dictator Vladimir Putin held small-group talks in Alaska on August 15.
After the meeting, Trump said that his talks with Putin were "extremely productive" and made progress on most of the issues discussed.
He later said he would postpone imposing additional sanctions or other "tough measures" on Russia because the meeting with Putin went "very well."
