Moscow Stock market Reopens for some bond trading. After a nearly month-long suspension over the war in Ukraine,
The Russian government’s bonds are the only ones that can be traded as part of a phased re-opening of the market and Moscow Stock market Reopens for some bond trading
On 24 February, Russian President Vladimir Putin sent thousands of troops into Ukraine.
According to Andrei Braginsky, the Moscow Exchange spokesman, trading in stocks will be able to resume soon.
He said, “Technically, everything is ready, and we hope it will resume soon.”
After a brief break, the market reopened at 13:00 (10:00 GMT) but only for OFZ bonds, the Russian acronym for Federal Loan Obligations.
The yields on those government bonds rose by almost 20% in pre-market trading, the highest in history. A higher yield means the government must borrow more money and indicates the investment is riskier. After trading began, the yield settled around 13%.
“Burger King Russia partner won’t shut down its stores.”
Elvira Nabiullina, the central bank’s governor, said on Friday that the bank will maintain its key interest rate at 20% and will purchase government bonds in order to limit volatility.
On Monday, oil prices rose over $3, with Brent crude climbing above $111 a barrel.
Following reports that the EU would join the US in imposing an oil embargo on Russia, prices increased. Earlier this month, the European Commission said it aimed to make Europe independent of Russian fossil fuels “well before 2030”.
The Russian economy is suffering from the invasion of Ukraine and the sanctions imposed by western governments.
On Monday, the Russian rouble traded at 104.83 RUB against the dollar. Nevertheless, it has declined by about a quarter since the invasion began.
Several supermarkets are rationing sales of basic goods such as salt and cooking oil.
Four days after the start of Moscow’s military action in Ukraine, the central bank doubled interest rates to 20%. A continuation of the conflict and the escalation of sanctions have further undermined confidence.
It was feared that Russia would default on its debts, but last week it paid $117 million in interest on two dollar-denominated bonds.