The exchange rate of the Russian ruble suffered biggest daily drop for over three years, while the shares of leading local companies collapsed, as investors reacted to the new sanctions imposed by the United States against some of Russian tycoons. The sanctions were announced on Friday (April 6) and are targeted at officials and businessmen around President Vladimir Putin in response to the alleged Russian intervention in the US presidential election in 2016.
The consequences may jeopardize the fragile recovery of the Russian economy, which has only begun to rise after the wave of sanctions announced for the annexation of the Crimea in 2014.
The ruble for a short time fell by more than 4%, after which it recovered slightly to 60.31 rubles per dollar, down by 3.67%. This is the strongest daily decline in January 2015.
The Russian currency fell by 5.56% against the EUR to 75.35 rubles per Euro. The ruble was quoted at a rate of 75 rubles per euro for the last time on August 3, 2016.
The shares of the two largest Russian banks Sberbank and VTB fell by 17.3% and 9.1%, respectively. The state-owned Sberbank has traditionally been seen as a barometer of the overall state of the Russian economy.
The stocks of aluminum companies of Oleg Deripaska have lost more than half of their value on the stock market after he joined six other oligarchs sanctioned with their companies and 17 political figures.
The Moscow Stock Exchange RTS index fell by 11.2% and the Micex-rated ruble index declined 7.7%, both fell to their lowest levels in September and November last year.