The stock market of the Russian Federation experienced a significant collapse following statements from representatives of the Russian Foreign Ministry regarding the possibility of strikes on Kyiv and calls to evacuate diplomatic missions from Ukraine. These events led to heightened panic among investors and a substantial decline in major stock indices.
This is reported by Finway
Since the beginning of 2026, the Moscow Exchange index has already lost about 6.5%. During this time, the total market capitalization of Russian companies has decreased by nearly 400 billion rubles.
Decline of Energy Company Stocks and Key Market Players
The stocks of leading energy corporations, which form the backbone of the Russian stock market, have faced the most pressure. In particular, Rosneft shares fell by 2.6%, reaching their lowest level since February of this year. Gazprom shares lost another 0.8% and dropped to their lowest levels since November 2025. A significant decline was also demonstrated by Novatek shares, which lost 3.9% of their value, marking one of the worst performances among large Russian companies.
Analysts explain this dynamic not only by the escalation of geopolitical risks but also by the deterioration of the overall economic climate within the country. The market shows signs of accumulating systemic problems, which increases distrust among investors.
Financial Instability and Rising Risks for the Russian Market
Experts note that even the rise in oil prices globally can no longer support the Russian market as it did before. Investors are increasingly considering the risks of sanctions, a reduction in investment activity, and difficulties in filling the country’s budget. The high level of uncertainty due to the war also plays an important role, as well as increased government spending on the military sector, which creates additional pressure on the financial system.
The Russian stock market remains significantly less liquid compared to the pre-war period. Many foreign investors have already left the country, and domestic capital is reacting to political and economic news with increasing caution. Economists emphasize that the current decline in indices is just one of the signals of further economic slowdown in Russia. Despite official statements from the authorities about “stability,” the financial sector is showing rising risks and alarming trends.