July 11, 2026

Nothing to See Here...


Nothing to See Here...
The Russian Stock Market over the past 5 years. Trading Economics

As reported in a recent article by The Bell, Russia's stock market is in its longest losing streak since the Moscow Exchange index was created in 1997, falling for 17 straight weeks and losing nearly 23% of its value since the start of the year.

"On the day of [Russia's] invasion [of Ukraine – February 22, 2022]," The Bell notes, "the index collapsed by 33 percent and closed at 2,085 points — by Bloomberg's count, the third-largest single-day drop in the history of the world's stock exchanges (only Argentina in 1990 and Kazakhstan in 2002 were worse). 

A recent plunge left the index barely above the low it hit on the day Russia invaded Ukraine in February 2022 — meaning an investor who bought Russian stocks that day has earned almost nothing in more than four years.

The immediate trigger was the Central Bank's decision in June to cut its key interest rate by only a quarter point, less than markets expected, seen as a sign the bank still views the economy as risky. That decision compounded existing pressures: falling oil prices, a stronger ruble squeezing exporters' revenue, sanctions on Russian crude, the fuel crisis and a broader economic slowdown. The slide accelerated further after President Vladimir Putin said he saw no point in meeting Ukrainian President Volodymyr Zelensky, underscoring how closely investor sentiment tracks the war.

Kremlin officials have downplayed the rout as normal volatility and ruled out intervention. But dividend payouts are shrinking as high rates and falling commodity prices squeeze corporate profits, and retail investors who bought stocks earlier this year expecting a dividend rally have largely been burned. Bank deposits, state-guaranteed and paying 14-15% interest, remain far more attractive than equities; Russians hold roughly five times more money in deposits than in brokerage accounts. That money indirectly funds the war, since banks use deposits to buy government bonds covering a budget deficit driven partly by military spending. Putin's 2024 order to double stock market capitalization by 2030 now looks out of reach, with capitalization falling rather than rising since then and one senior central banker calling the target "almost impossible."

Separately, Russia's fuel crisis is worsening. Ukrainian drone strikes have hit refineries supplying a large share of national output, including, for the first time this week, the country's largest refinery, in Omsk. Gasoline production has fallen to roughly 65% of seasonal demand, forcing Russia to ban fuel exports and boost imports even as officials acknowledge shortages and long lines at gas stations. Sources close to the Kremlin told Reuters the strikes are only hardening Putin's resolve to keep fighting, with one saying he believes Russia can still capture the remainder of Donetsk region. Moscow has responded with intensified missile strikes on Ukrainian cities, chiefly Kyiv.

You Might Also Like

Like this post? Get a weekly email digest + member-only deals

Some of our Books

Murder and the Muse
December 12, 2016

Murder and the Muse

KGB Chief Andropov has tapped Matyushkin to solve a brazen jewel heist from Picasso’s wife at the posh Metropole Hotel. But when the case bleeds over into murder, machinations, and international intrigue, not everyone is eager to see where the clues might lead.

The Samovar Murders
November 01, 2019

The Samovar Murders

The murder of a poet is always more than a murder. When a famous writer is brutally stabbed on the campus of Moscow’s Lumumba University, the son of a recently deposed African president confesses, and the case assumes political implications that no one wants any part of.

At the Circus
January 01, 2013

At the Circus

This wonderful novella by Alexander Kuprin tells the story of the wrestler Arbuzov and his battle against a renowned American wrestler. Rich in detail and characterization, At the Circus brims with excitement and life. You can smell the sawdust in the big top, see the vivid and colorful characters, sense the tension build as Arbuzov readies to face off against the American.

Murder at the Dacha
July 01, 2013

Murder at the Dacha

Senior Lieutenant Pavel Matyushkin has a problem. Several, actually. Not the least of them is the fact that a powerful Soviet boss has been murdered, and Matyushkin's surly commander has given him an unreasonably short time frame to close the case.

Bears in the Caviar
May 01, 2015

Bears in the Caviar

Bears in the Caviar is a hilarious and insightful memoir by a diplomat who was “present at the creation” of US-Soviet relations. Charles Thayer headed off to Russia in 1933, calculating that if he could just learn Russian and be on the spot when the US and USSR established relations, he could make himself indispensable and start a career in the foreign service. Remarkably, he pulled it of.

Fearful Majesty
July 01, 2014

Fearful Majesty

This acclaimed biography of one of Russia’s most important and tyrannical rulers is not only a rich, readable biography, it is also surprisingly timely, revealing how many of the issues Russia faces today have their roots in Ivan’s reign.

The Pet Hawk of the House of Abbas
October 01, 2013

The Pet Hawk of the House of Abbas

This exciting new trilogy by a Russian author – who has been compared to Orhan Pamuk and Umberto Eco – vividly recreates a lost world, yet its passions and characters are entirely relevant to the present day. Full of mystery, memorable characters, and non-stop adventure, The Pet Hawk of the House of Abbas is a must read for lovers of historical fiction and international thrillers.

 
Woe From Wit (bilingual)
June 20, 2017

Woe From Wit (bilingual)

One of the most famous works of Russian literature, the four-act comedy in verse Woe from Wit skewers staid, nineteenth century Russian society, and it positively teems with “winged phrases” that are essential colloquialisms for students of Russian and Russian culture.

About Us

Russian Life is the 31-year-old publication of an award-winning publishing house that also creates books, and other products for Russophiles the world over.

Latest Posts

Our Contacts

Russian Life
73 Main Street, Suite 402
Montpelier VT 05602

802-223-4955