The stock market in Moscow fell hard on Monday due to fears of a further escalation of the war in Ukraine. Russia’s MOEX index plunged nearly 12 percent at market opening, falling below 1,800 points for the first time since Russia’s invasion of Ukraine on Feb 24.
The price drop followed a major explosion on Saturday morning at the Crimean Bridge, which connects the Crimean peninsula with Russia. The Kremlin blames Ukraine for this. In addition, Russian missile strikes have taken place in Ukrainian cities across the country, according to Ukrainian President Volodimir Zelensky.
In Kyiv, people have been killed and injured. These are the first attacks on the Ukrainian capital since June. The attack on Kyiv may be in retaliation for the attack on the Crimean Bridge.
After the sharp opening loss of the Russian stock market, the loss fell in the first trading hour. The MOEX is currently trading in the red at 3.8 percent. Gazprom plunged 17 percent. However, the share of the Russian state gas group also trades ex-dividend. This means that a share no longer entitles the holder to the dividend over the past period. This usually creates extra price pressure.
Gazprom posted record profits in the year’s first half thanks to the sharp rise in energy prices. The group will therefore pay a record dividend of 20 billion euros in the first six months. A large part of that money is intended for the Russian state.