Russian Markets Plummet as Hopes for Ukraine Peace Deal Fade

Russia’s primary stock index continued its downward trend on Monday, negating the earlier gains observed this month following U.S. President Donald Trump’s announcement of plans to meet with President Vladimir Putin in Alaska. This announcement had briefly raised optimism regarding potential progress in resolving the conflict in Ukraine.

The Moscow Exchange Index (MOEX), which monitors 40 of the country’s largest enterprises, opened with a 0.4% decline, settling at 2,885 points and later worsening to a 0.84% drop. The RTS index, denominated in dollars, fell by 0.84% to reach 1,125 points.

Major companies such as Aeroflot, mobile provider MTS, energy firm En+, Credit Bank of Moscow, and power producer Unipro were among the biggest losers, each experiencing declines exceeding 2%.

Last Thursday and Friday marked the first time the MOEX index fell below 2,900 points since August 7, when news of the Trump-Putin summit sparked a two-week rally. Analysts suggest that some investors have since realized profits and are now awaiting new indicators regarding peace negotiations.

Analysts emphasize that geopolitical factors continue to be the primary influence on volatility within the Russian market this year. They point out that Putin’s upcoming trip to China this weekend could serve as the next significant event, potentially resulting in the announcement of new trade agreements.

The ruble experienced a modest decline, trading at 80.65 against the dollar, 94.37 against the euro, and 11.26 against the yuan, based on spot market data reported by Reuters.

Meanwhile, oil prices remained stable following last week’s increase amid diminishing speculation regarding a peace agreement.