Vladimir Putin’s invasion of Ukraine sent Russian equities tumbling in February. Nearly 10 months later, a recovery looks far off after sanctions triggered an investor exodus and made them the world’s worst performers.
February’s sell-off prompted a record-long shutdown of the Moscow market. Its dollar-denominated RTS index has now sunk 35% this year, making it the worst performing benchmark among 92 tracked globally by Bloomberg in local currency terms and third-worst in dollars. The MOEX Russia index, priced in roubles, has plummeted 44%, on track for the steepest annual drop since 2008. With the strain of war growing, more losses may lie in store.
Lukoil and Gazprom, the weightiest members of the MOEX index, are down 30% and 53% respectively this year. Meanwhile, the largest listed lender, Sberbank of Russia, has tumbled 54% as international sanctions hit everything from Russia’s ability to access foreign reserves to the Swift bank-messaging system.