posted at 02:50
Author Name: Sam Ro
Russia Stocks Up After Sanctions
Russia's MICEX index is up a healthy 2.2% today. On Tuesday, President Barack Obama announced a fresh round of economic sanctions on Russia for its ongoing involvement in destabilizing Ukraine. "Among the targets of the new measures include the Bank of Moscow, the fifth-largest bank in Russia; the Russian Agricultural Bank, the fourth-largest; and VTB Bank, the second-largest," reported BI's Brett Logiurato. "The sanctions prohibit U.S. citizens or companies from providing new financing to the three major Russian financial institutions, thereby cutting off their access to U.S. capital markets. Along with sanctions announced two weeks ago, the U.S. has now targeted five of the six largest state-owned banks in Russia." Obama's announcement followed the European Union's announcement of sanctions on Russia. Still, there's little doubt that Russia's economy is indeed under pressure. Russia's MICEX index is actually down 3.5% since the beginning of the year; compare that to the S&P 500, which is up 7.8% during that period. Today's reaction reflects investors' expectations for the sanctions.

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