The dollar rose above 66 rubles, the euro - above 77 rubles on news of new sanctions

At the opening of trading on the Moscow Exchange on Thursday, the dollar and euro rose by more than a ruble. The reason is the new sanctions imposed on Russia by the Donald Trump administration the day before.

Details

• At 10:10, the US currency was trading at 66.6 rubles, and the euro - at 77.23 rubles. Later there was a correction. At 10:45 am the American currency cost 66.2 rubles, and the European one - 76.75 rubles.
• The decline is also observed in the stock market. The RTS index dropped by 10:15 by 3.21%, to 1078 points. The MICEX index fell almost 1% to 2269 points.
• Sberbank shares fell 5% (both common and preferred), Aeroflot shares fell 8%. Against this background, papers of commodity companies look good: the price of shares of Gazprom and Rosneft has changed little since yesterday's close. Only Alrosa shares fell by almost 3%.

Context

• The Trump administration announced yesterday that it was imposing new sanctions on Russia after it found that Moscow had used chemical weapons against ex-GRU Colonel Sergei Skripal living in the UK. Washington believes that Moscow violated the 1991 law on the control and prohibition of chemical and biological weapons. This document provides for two rounds of sanctions. First, trade and financial restrictions are imposed, for example, on the export of civilian dual-use electronics to Russia. If within three months the violating country does not fulfill its requirements (cessation of the use of chemical weapons and the provision of appropriate guarantees, the admission of international inspections), the president, after consultation with Congress, must impose additional sanctions. This must be at least three of the six measures listed in the law: 1) the US vote against the provision of any loans to the country by international banks; 2) a ban on lending to the government of the country by US banks; 3) a ban on the export of any American goods to the country; 4) a ban on imports from the country into the United States of any goods other than food; 5) downgrading or suspension of diplomatic relations; 6) a ban on air transportation by airlines controlled by the government of the country (that is, Aeroflot may suffer). More - here .
• Another package of sanctions is considered by the US Congress. The publication on the eve of the full text of this bill caused the strongest shock on the Russian market since the April sanctions. At the closing of the Moscow Exchange, the dollar for the first time in almost two years cost more than 65 rubles, the euro - more than 75, Sberbank - fell in price to the April minimum. You can read more about how the sanctions will affect the clients of Russian banks here .

Vladimir Motorin