Morning Note /
Russia

Alfa Morning Bulletin: 23 March 2022

  • Russian equity trading remains suspended

  • Funds flow from bonds to stocks

  • Oil and commodity prices elevated as fresh Russian sanctions loom

Alfa
23 March 2022
Published by

Russian equity trading remains suspended: The Russian equity market remains closed although there are signs that the central bank may open the Moscow Exchange to local investors in the near future. Trading by non-residents is likely to remain frozen for the foreseeable future. Trading in government bonds (OFZs) resumed on Monday.

Oil and commodity prices elevated as fresh Russian sanctions loom: Oil and commodity prices are elevated and creeping higher with US President Joe Biden visiting Europe for back-to-back summits in Brussels on Thursday. There is a busy schedule of meetings tomorrow between NATO, the G7 and the EU and additional sanctions against Russia are expected to be unveiled. The key item on the agenda is to decide on a fifth sanctions package. Few details have emerged about the proposals but energy restrictions and an expansion of the list of sanctioned individuals is expected. There is also talk about banning all Russian ships from using EU ports as part of a plan to create a trade embargo. Talks between Ukraine and Russia are tense but moving forward according to officials from both sides.

KEY NEWS

Russian banks experienced jump in demand for loans and retail deposits outflow in February – NEGATIVE