Russian Stocks Drop as Ruble Slips to Record Low on Sanctions, Price of Crude Oil
Stocks fell and the ruble weakened to a record as oil, Russia’s main export earner, slid to the weakest level in two years and fresh U.S. and European Union sanctions stoked concern the Ukraine crisis will deepen.
The currency declined to its weakest intraday level against the central bank’s dollar-euro target basket and traded down 1.4 percent at 43.4386 as of 8:08 p.m. in Moscow. It was the worst performer among emerging markets versus the dollar. Bonds due February 2027 dropped, lifting the yield six basis points to 9.70 percent. The Micex Index slid 0.3 percent.
The U.S. and the EU stepped up their sanctions last week on Russia, stoking concern over further capital outflows and weakening the ruble. Brent oil dropped to as low as $96.21 a barrel today. Russia receives about half its budget revenue from oil and natural gas taxes.
Russia relies on oil and gas for about two-thirds of exports and half of federal budget revenues.
http://www.bloomberg.com/news/2014-09-15/ruble-drops-to-record-after-ukraine-sanctions-as-crude-slides.html
The fall in the price of oil may be causing Russia as much economic trouble as Western sanctions are.
