Morning Note /
Russia

Weekly Radar – Russia faces further sanctions as Biden visits Europe

  • OFZ trading resumes, Russian equities trading expected to start in the near future

  • Global equities advanced as Russia remained closed

  • The CBR kept its key policy rate unchanged at 20%

John Walsh
John Walsh

Equity Strategist

Contributors
Denis Dorofeev
Boris Krasnozhenov
Alfa
22 March 2022
Published by

OFZ trading resumes, Russian equities trading expected to start in the near future: The Moscow Exchange has reopened trading in ruble-denominated government bonds (OFZs). The Russian equity market remains suspended for an unprecedented fourth week although it is expected to reopen in the near future.

The key watch of this week in Russia economic release is the publication on Wednesday of inflation data, where there is a risk that price growth will continue to accelerate.

Diplomacy efforts continue between Russia and Ukraine and while there are areas where concessions and compromise are possible, both sides remain poles apart on certain key issues. For now, it appears that negotiations are going to take time and we do not anticipate any breakthroughs on a one-week horizon.

The main focus geopolitically this week is expected to be on Thursday when US President Joe Biden arrives in Europe for an emergency NATO meeting and a gathering of the G7 leaders.