The MOEX Russia Index sank to the 2,650 mark on Thursday, close to the year-to-date low of 2,540 from on October 14th as additional sanctions against Russia pressed the outlook for major energy companies and Moscow’s fiscal stability. Rosneft sank 5% to a two-year low and Lukoil dropped 4% after the US sanctioned both oil giants, which together account for half of Russian oil exports and a large portion of the federal government’s budget revenue. Indian refineries noted that the sanctions and additional pressure from the US government are likely to halt oil orders from Reliance and state processors, magnifying the impact of the measures. In the meantime, Novatek dropped 3.5% and Gazprom lost 2% as the EU was set to prohibit members from buying Russian LNG as of 2027. Russian stocks had declined sharply since August as higher inflation, high interest rates by the CBR, and a lower public spending outside of defense dented domestic economic activity.
