© Reuters. THE RUSSIAN ASSETS FALL AFTER NEW U.S. SANCTIONS
MOSCOW/LONDON (Reuters) – The Moscow stock Exchange and the ruble have fallen sharply Monday after the announcement by the United States sanctions directed at companies, businessmen and political leaders Russian suspected by Washington of being linked to activities that are “malicious” and meant to destabilize the western democracies.
The RTS index of the stock Exchange in moscow fall of 9.58% at about 11: 30am GMT, returning to its lowest level since last September. At the same time, the ruble yield of 2.8% against the dollar to 59,7675.
The u.s. department of the Treasury on Friday announced sanctions against 24 Russian representatives and 14 companies and legal entities.
On this list are, among others, Oleg Deripaska, called “the aluminium king” and close to Vladimir Putin, Alexei Miller, ceo of Gazprom, as well as EN+ Group, the holding company of Deripaska. Are also concerned Renova, owned by Viktor Vekselberg, and the aluminum producer Rusal.
The companies sanctioned lose direct access to the u.s. market.
The action Rusal listed in Hong Kong finished the day down 50,43%. The group, which achieves 14% of its sales in the United States, said Friday that it was “highly likely that the impact (of sanctions-ed.) on the operations and prospects may be strongly negative”.
Rusal would be unable to honor the maturities on its debt. On the bond market, the securities issued by the group maturing in 2022, to lose 14% of their face value.
An indirect consequence of the sanctions on Rusal, the aluminum prices jumped up 4.63%, the highest since almost a month.
The bonds issued by Polyus, the leading producer of gold in Russia, are also in sharp decline, the lowest since their issue. The group has not been targeted directly by Washington, but the sanctions affect Souleïman Kerimov, a member of the Federation Council of Russia, whose family controls its capital.
The sovereign debt Russian language is not spared: the CDS (credit default swaps) to five years on the securities issued by Moscow, hedging against a default risk, are rising by six basis points to 127 points according to IHS Markit, the highest since mid-December.
The action Gazprom abandons it 5,23% in the Moscow stock Exchange and In+ Group collapses to 34.2% in the London stock Exchange.
The motion of no confidence vis-à-vis the Russian assets also affects companies that are not covered by the latest u.s. sanctions: the share of the mining group Evraz listed on the London exchange gives in and 14,98%, helping to weigh on the index Footsie 100.
“The us list may not be definitive, and it is felt that there will be other penalties, so investors do not know what actions it is necessary to hold, is there still,” said John Meyer, analyst specialist in the mining sector at SP Angel.
“American investors have until 7 may to sell their stakes in Rusal and En+”, he says.
On the swiss market, the group of mechanical engineering Sulzer, controlled by Renova, loses 14,89%. Together for an emergency Sunday, its board of directors has decided to repurchase the five million shares, or 15% of the capital, Renova for escape sanctions, by reducing the participation of the Russian holding company under 50%.
Schmolz & Bickenbach, and Oerlikon, in which Renova is also a shareholder, give respectively 5,55% and 7,82%.
(Polina Ivanova, Helen Reid and Claire Milhench; Marc Angrand for French service, edited by Blandine Hénault)