Trumps Crazy Comments Trigger Steep Decline in Russian Stocks Amid Sanction Fears

Russia’s stock market experienced a decline of over 2% on Monday following comments from U.S. President Donald Trump, who labeled Russian President Vladimir Putin as “crazy” and hinted at new sanctions due to Moscow’s ongoing military actions in Ukraine.

By 5:30 p.m. local time, the Moscow Exchange (MOEX) index had fallen to 2,711 points, down from an opening figure of 2,735.

The biggest losses were seen in Sovcomflot, the country’s leading shipping firm, which saw its shares tumble by more than 5%. Additionally, stocks of the energy and metals conglomerate En+ Group, as well as state-owned Gazprom and the technology company VK Group, all experienced declines exceeding 4%.

The investment firm Finam identified Trump’s statements as the key factor behind the market’s downturn. During a press conference on Sunday, Trump expressed his dissatisfaction with Russia’s latest missile and drone assaults on Ukraine and confirmed that he was “absolutely” considering imposing new sanctions.

Finam also highlighted a growing market apprehension linked to increasing economic instability. More than two dozen publicly traded companies in Russia have recommended refraining from dividend payments based on their 2024 earnings this spring.