Crimea shatters the ruble to rubble and sinks the MICEX

There’s a lot of talk about the Crimea crisis on every medium of media you can find. Still many might have missed how the crisis has affected the Russian stock market and other financial aspects in Russia. When ever there’s a political or some other kind of crisis that could possibly have major consequences, investors react. It’s a cautionary action which alerts other investors and the ball begins to roll. There isn’t so much anyone can do about it except try to be faster than others or take the risky road and leave your money where others don’t and ride it out.

According to The Guardian Business news, during March 3rd the Russia MICEX index plummeted 10,7% and reached a nine month low. Some large Russian companies lost up to a quarter of their value during that day. Mostotrest which is the largest heavy construction company in Russia dropped 25%. Rosseti, an electricity transmission company, lost 22,8% and Mechel, a mining firm, dropped 20%. According to the same news article investors noticed quickly what was happening and many sold there Russian shares. By the end of the day nearly 60 billion US dollars were pulled from the MICEX index. That’s more than the Sochi olympics cost lost in just one day.

The Russian ruble has seen better days as well. The Moscow News reported that the Russian currency has sunk to an all time low against the euro. The drop happened already in February and since then the ruble hasn’t recovered.

These kinds of news make you wonder if the decision makers have had all of the possible ramifications in mind when they’ve made their decisions. Could there have been a “cheaper” way to handle a crisis of this sort? Possibly, but probably there’s no way to tell which it was before trying it. Historians might have some insight that could be helpful in the future since they have studied and analysed the actions of past leaders. Let us hope the devastating losses limit themselves to monetary item and stay out of the biological realm.





This entry was posted in Latest news in Accounting and Finance, Uncategorized. Bookmark the permalink.

5 Responses to Crimea shatters the ruble to rubble and sinks the MICEX

  1. tteme7 says:

    Very interesting topic aswell 😀

  2. financestudent33 says:

    good content

  3. immosenniko says:

    Very much new information for me!

  4. financestud says:

    That’s very interesting topic. It’s also interesting to see how this Crimea’s situation has affected Russia’s economy.

  5. ajoonas says:

    The structure was good and also the topic got the reader interested.

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