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Putin Has a Problem: Is the Russian Economy Slowly Dying?

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Russian artillery firing. Image Credit: Creative Commons.

Russian Stock Market Closed for the Fourth Day Due to War in Ukraine Issues – The Russian stock market will stay closed for a fourth consecutive day, according to a statement from the Russian central bank.

It comes as Russia faces continued serious financial woes, with Russian citizens lining up to withdraw their savings from major national banks across the country and sanctions from the United States and Europe putting major pressure on oligarchs and businesses alike.

Late on Wednesday, the Bank of Russia said that stock and derivatives will not continue trading on the Moscow Exchange on Thursday, with very limited exceptions.

Russia “Uninvestable”

U.S. finance company and index compiler MSCI Inc. announced on Wednesday that Russian stocks would be removed from its influential indexes that track emerging markets. The decision was made as a result of the closure of the Moscow Exchange, which stopped global investors from being able to sell their Russian holdings.

In a statement, the firm said that asset owners, asset managers, broker dealers, and major exchanges have said “with an overwhelming majority” that the Russian equity market has become entirely uninvestable.

Russian securities will on March 9 be moved to a “Standalone Market” category as opposed to “Emerging Markets.”

“Russia will be deleted from all FTSE Russell Equity Indices effective from the open of Monday, March 7,” the statement said.

Investors “Trapped” In Crashing Market

The decision to close the Russian stock market was one of several moves made by the Bank of Russia designed to protect its currency. On Monday, the central bank raised interest rates from 9.5% to 20% in response to the value of the ruble crashing. The Bank of Russia also resumed purchasing gold on the domestic market.

By the third day of the closure of the Russian stock market, it was the longest closure since October 1998.

Britain’s Telegraph newspaper also reported that over £1 billion in investors’ money was trapped in Russia after JP Morgan and other asset managers suspended funds operating in the Russian stock market.

Investors are effectively locked into the crashing Russian market, with the KPM Emerging Europe Equity, JPMorgan Russia Equity and JPMorgan Emerging Europe Equity Funds all suspended indefinitely.

Jack Buckby is a British author, counter-extremism researcher, and journalist based in New York. Reporting on the U.K., Europe, and the U.S., he works to analyze and understand left-wing and right-wing radicalization, and report on Western governments’ approaches to the pressing issues of today. His books and research papers explore these themes and propose pragmatic solutions to our increasingly polarized society.

Written By

Jack Buckby is a British author, counter-extremism researcher, and journalist based in New York. Reporting on the U.K., Europe, and the U.S., he works to analyze and understand left-wing and right-wing radicalization, and reports on Western governments’ approaches to the pressing issues of today. His books and research papers explore these themes and propose pragmatic solutions to our increasingly polarized society.

3 Comments

3 Comments

  1. Alex

    March 3, 2022 at 8:46 pm

    Russia has provided for all the sanctions. Even the iron curtain and nuclear war. But fools don’t see it.

  2. Alex

    March 5, 2022 at 4:48 am

    This is the fifth article in a row that begins with the words “Putin has a problem …”. First, you should understand that the decision of the President of Russia was supported by the majority of Russian citizens. Secondly, if there are problems, then not with Putin personally, but with Russia. And thirdly, you can repeat mantras about Russia’s problems as much as you like, but Russia has always solved its problems, whether it is worth accepting, whether you want it or not.

  3. MacLovin

    April 19, 2022 at 11:12 pm

    Alex is a Russian shill-bot.

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