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Russian shares take 75% dive on London Stock Exchange

Dollar is now 109.13 rubles, while the euro is RUR 120.14

Russian shares take 75% dive on London Stock Exchange
Photo: EPA/UPG

On Monday, 28 February, Russian stocks on the London Exchange crashed by 75%. Novatek stocks lost 54% in value, Rosneft, 45.51%, X5 Group, 36.25% and Surgutneftegaz, 19%. 

According to the Russian RBK, blue chips (shares of the largest, most liquid and reliable businesses with stable incomes and dividends) suffered the most [ed. - the term references the blue chips used in gambling games, which have the highests value]. Sberbank’s protected notes fell 75% to reach $0.97, a record low. Gazprom’s securities crashed 60% to reach $2.25.

As the stocks plummet, the Russian ruble is growing weaker. On the Moscow Stock exchange, the ruble dropped 28% against the dollar. The dollar now costs 109.13 rubles, the euro, RUR 120.14.

Earlier, the official morning trading session on the Moscow Stock Exchange did not start at 7 a.m. as scheduled. On Monday, 28 February, the trading on the foreign exchange and money markets opened at 10 a.m. Moscow time (9 a.m. Kyiv time).

During the morning trading session on the Moscow Stock Exchange, the dollar grew from RUR 83 (the end-of-day rate on Friday, 25 February) to RUR 90, the new record high. The euro grew from RUR 93 to RUR 101. Later, the trading virtually stopped, with the dollar and the euro both reaching maximum rates. 

The Russian currency reached a record low after sanctions were imposed on the Russian Central Bank by the European Union, with the United States and other G7 member states promising to follow suit. They decided to ban any and all operations with security reserves and assets.

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