Russia's financial system has been affected by a global credit crunch which started in the U.S. and quickly spread to Asia and Europe leading to record losses on Russia's financial markets, rising interest rates and a liquidity shortage.
Sergei Sheikov, managing director for corporate clients at the Olma Company said: "Monday became one of the blackest days for most market participants - for the first time since 2005 the RTS index closed below the psychologically important benchmarks of 900 and 1,000 points."
Losses for many blue chip stocks exceeded 20% with Norilsk Nickel shares worst hit as they plunged 30.2%. The losses forced the closure of the MICEX, Russia largest index, and RTS three times on Monday.
Fears regarding the spread of financial crisis caused all world markets to plunge, which contributed to Russia's market losses. Britain's FTSE 100 experienced its worst day since 1987 as stocks plunged 7.85% and France's Cac 40 index fell 9.04%, and in the U.S. shares fell below the 10,000 point level for the first time in four years as they shed 4.65%.
Add to blog
You may place this material on your blog by copying the link.
Image Galleries: Removing Protesters’ Barricades in Kiev
Infographics: First Russian Smartphone
Russia has become very adept in playing the diplomatic game, in which victory depends on choosing the right associate or partner. But there are a growing number of claimants to this role in the new horizontal and interdependent world. Aside Syria and Iran, being still important, the new venues for the application of practical diplomacy may well be Ukraine, the East China Sea and Afghanistan.