Despite the fact that US President Donald Trump did not impose tariffs against the aggressor country Russia, it still suffered from the American leader's decisions.
Points of attention
- Not only did Trump's actions impact the Russian economy, but OPEC's plans to increase oil production are also expected to negatively affect the Russian stock market.
- The decrease in capitalization of major Russian companies like Sberbank, Gazprom, Mechel, and Novatek highlights the vulnerability of the Russian economy to external factors.
What is happening to the Russian economy?
Analysts point out that Russian stock exchanges collapsed after the US president launched a global tariff war.
It is hard to ignore the fact that the capitalization of companies on the Moscow Exchange (MOEX) has decreased by $23.7 billion.
The MOEX Russia index, which tracks Russia's 43 largest public companies, has lost 8% over the past few days.
According to experts, this was the largest drop in the last 3 years.
In particular, the shares of such Russian giants as Sberbank (5.2%), Gazprom (4.9%), metallurgical and coal giant Mechel (7%) and gas company Novatek (5.4%) fell in price.
Analysts have predicted that the US tariffs will likely cause a global economic slowdown and a decline in oil demand and, consequently, oil prices. This will also have a negative impact on the aggressor country.
In addition to the indirect effect of Trump's global tariffs, the Russian stock market was affected by OPEC's plans to more than triple oil production in May.
