“We are playing a very dangerous game with the Russians”: how this small state tripled its economy thanks to sanctions against Russia
Several factors
“L“Russia’s actions are under attack from all sides,” explains Dmitry Lozovoy, Finam analyst, on the website Moscow Times. Another analyst also told Russian media that “The risks of sanctions have increased, and incidents involving drones have become more frequent. Moreover, negotiations, at least publicly, have reached a dead end.”
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“This 15-week streak of losses now exceeds the decline recorded during the 2008 global financial crisis.”
Add to this the shocking statements of the opposition Communist Party secretary Gennady Zyuganov, who said this week that 30 billion rubles (about 340 billion euros) belonging to Russian citizens and businesses could be “mobilized by Putin” if necessary to replenish the budget, reports Big Continent. In addition, the decision of the Central Bank of the Russian Federation to reduce the key rate was also regarded as a sign of upcoming economic difficulties, independent Russian media reported. Jellyfish.
Result: investors sell off their shares en masse. “This 15-week streak of losses now exceeds the decline recorded during the 2008 global financial crisis.Russian media report.
tastes of Gazprom
In particular, the Russian gas giant Gazprom, whose controlling stake is owned by the state, is suffering. The group is down about 24% over the past 12 months and is down nearly 10% this week. Its share price even fell below 100 rubles for the first time since 2009. This is precisely the reason, reports a specialized website. Investing.comEurope’s decision to reduce purchases of Russian energy resources led to a drop in demand. But also oil prices, which have fallen due to progress in negotiations between the United States and Iran.
Ukraine has hit Russia in the heart with a massive drone offensive on Moscow
But above all, last week’s Ukrainian drone attack on a Moscow refinery owned by Gazprom Neft, Gazprom’s oil subsidiary, has reignited fears.
Ukraine’s attack on a Gazprom subsidiary last week. ©AFP or licensors
Oil drop
Added to this are new concerns regarding the geopolitical context and oil exports. Since the Middle East war broke out in late February, Russia has benefited from the easing of US sanctions on its oil before they were reinstated a few weeks ago. Estimated Financial TimesHowever, the country would be able to earn more than $150 million a day “thanks to the war.”
But negotiations between Iran and the United States, as well as the partial opening of the Strait of Hormuz and the lifting of sanctions on Iranian oil, led to a fall in oil prices. News that clearly doesn’t sit well with the big oil groups. Russian investors now believe that this development should have a serious impact on Russian earnings. The ruble, Russia’s currency, has already suffered the consequences, losing about 7% of its value against the dollar over the past month.