Morning Note /
Russia

Alfa Morning Bulletin: 7 April 2022

  • Russian equities traded mixed

  • Inflation and hawkish policy comments trigger risk-off

  • Russia faces EU sanction

Alfa
7 April 2022
Published byAlfa

Russian equities traded mixed: Russian equities were mixed yesterday – RTSI (+3.0% @ 1,034) and IMOEX (-1.9% @ 2,611). The ruble strengthened (+4.3% @ 79.70). Oil prices dropped (Brent -5% @ 102.00) due to the release of reserves by the US and other nations.

Russia faces EU sanction: The Duma yesterday adopted a law to delist the DRs of Russian stocks on exchanges abroad. The depositary receipts will be converted into equities traded in Russia. The US announced new sanctions yesterday banning investment in Russia as well as adding two banks to the SDN list. Energy transactions were excluded from the sanctions on both banks. European Union diplomats failed to approve new sanctions on Wednesday, as technical issues needed to be addressed, including on whether a ban on coal would affect existing contracts, sources said.

KEY NEWS

Annual inflation at 16.7% as of April 1 – NEGATIVE

Russia made a $649.2 mln coupon payment on Eurobonds in rubles – NEGATIVE