Hey folks, welcome to this week's rundown of the top news coming out of Russia and its impact on the global economy.
[Markets] Russian markets fell at a record-breaking pace this week. The Moex index briefly fell 45 per cent before recovering to close the main session 33 per cent lower, while the rouble tumbled to a record low against the dollar on Thursday after President Putin announced the invasion. Shares in oil and gas majors plummeted, with Gazprom down 37 per cent and Lukoil and Novatek declining 34 per cent and 20 per cent respectively, leaving the Moex down 46 per cent since the start of the year. The scale of the shock to markets suggests that investors had expected Putin to back down.
Over60: FT
[Commodities] Wheat and other grain prices have soared since the Russian invasion of Ukraine. According to S&P Global Platts, Russia and Ukraine together were projected to export 60mn tonnes of wheat in the crop year of 2021-2022. All Ukrainian wheat exports, and most Russian exports, pass through terminals along the north shore of the Black Sea. It is not certain when Black Sea ports can reopen.
Over60: FT
[Energy] Gas prices in the UK and continental Europe dropped more than 30 per cent on Friday on relief that western sanctions had not dealt a crippling blow to Russia’s ability to sell energy and other commodities. Russia supplies about 40 per cent of Europe’s gas supplies, and concerns that flows could be disrupted after Moscow’s invasion of Ukraine saw the price surge almost 70 per cent.
Over60: FT
[Debt] S&P said late on Friday New York time that it would reduce Russia’s rating from triple-B minus to double-B positive. S&P’s decision strips Russia of its investment-grade standing at one of the main three rating agencies, pushing Moscow into a league of riskier countries that typically pay higher borrowing costs. Russia still holds an investment grade status both with Moody’s and Fitch.
Over60: FT