Russian Stock Market Plummets Amid New U.S. Sanctions on Key Oil Producers

Russia’s stock market experienced a significant downturn on Thursday as investors reacted to the latest U.S. sanctions aimed at the nation’s largest oil firms, Rosneft and Lukoil.

The MOEX Russia Index, which monitors 40 of the largest publicly traded companies in the country, dropped as much as 3.6%, reaching a low of 2,546, its lowest point in over a week.

The RTS Index, which focuses on Russian stocks priced in U.S. dollars, saw a similar decline.

Shares of Rosneft and Lukoil, the two oil industry leaders affected by the recent sanctions imposed by U.S. President Donald Trump, declined by 3.78% and 5.85%, respectively, wiping out a significant portion of their gains in October.

Stanislav Kleshchev, a strategist at VTB My Investments, remarked, «The U.S. government’s decision to impose direct sanctions on vital oil producers indicates a new level of escalation.»

The European Union intensified the situation on Thursday by implementing its 19th sanctions package against Russia, targeting essential energy earnings, financial systems, and technology supply lines.

Arne Lohmann Rasmussen, an analyst at Global Risk Management, stated, «These new sanctions are expected to have a tangible effect.»

Mikhail Zeltser, an analyst at BKS, noted, «There are plenty of reasons for renewed selling pressure,» pointing to soaring inflation, Trump’s cancellation of the Budapest summit with President Vladimir Putin, and unverified reports indicating that the U.S. had lifted a significant restriction on Ukraine’s use of Western-supplied long-range missiles.

“Volatility has surged once again, leading to a swift drop in stock prices to autumn lows,” Zeltser explained.

The sanctions drove oil prices significantly higher, with Brent crude rising by 5.4% to $65.96 per barrel and West Texas Intermediate (WTI) climbing 5.6% to $61.77.

Gold, often seen as a safe haven in volatile times, rebounded from a period of heavy selling, increasing by over 1% to around $4,100 an ounce, though it remained below the record high of over $4,381 reached earlier this week.

Reporting by AFP contributed to this article.