Russian Market Plummets as Trump Labels Putin Crazy and Considers Sanctions

Russia’s stock market experienced a decline of over 2% on Monday following comments from U.S. President Donald Trump, who described Russian President Vladimir Putin as “crazy” and hinted at the possibility of new sanctions in response to Moscow’s ongoing aggression towards Ukraine.

By 5:30 p.m. local time, the Moscow Exchange (MOEX) index had fallen to 2,711 points, down from its opening figure of 2,735.

Sovcomflot, the largest shipping company in Russia, was at the forefront of the losses, plummeting by more than 5%. Shares of energy and metals powerhouse En+ Group, as well as state-owned Gazprom and tech company VK Group, all experienced declines exceeding 4%.

Investment firm Finam cited Trump’s comments as the primary factor behind the market’s downturn. While speaking to the media on Sunday, Trump expressed his dissatisfaction with Russia’s recent missile and drone assaults on Ukraine and confirmed he was “absolutely” contemplating new sanctions.

Additionally, Finam highlighted a general sense of market anxiety due to increasing economic uncertainty. At least twenty publicly traded Russian firms have recommended against distributing dividends based on their 2024 performance this spring.