Moscow stock exchange scheduled to reopen
Russia’s Moscow stock exchange is scheduled to reopen today pending a possible postponement.
The stock exchange was closed temporarily on the 25th of February amid the country’s invasion of Ukraine and subsequent sanctions placed on Russia. The closure was implemented due to the expectation of a major decline in the market’s value. The Russian economy, as a whole, is facing a major downturn due to global economic concerns and the impact of sanctions. For example, the value of the Russian rouble shrunk from 84 per dollar before the invasion to 154 per dollar on March 7.
The Russian government has attempted to stabilize the situation by injecting up to $10 billion from its sovereign wealth fund into local stocks. Government measures may therefore limit the extent of losses in the short-term, however this assistance cannot reverse the economic decline in the medium-term. Even If a peace agreement with Ukraine is achieved and sanctions are lifted, there is unlikely to be a swift economic recovery in the medium-term. One of the major sectors of the Russian economy that has been mostly left unsanctioned is its gas and oil industry. Should sanctions target this area, expect further economic troubles in the country.
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