Ruble collapses, Russian banking subsidiaries go bankrupt: Implications of Western sanctions – rts.ch

The effects of Western sanctions against Russia are not far off. The ruble fell at the start of trading on Monday morning, while the European subsidiary of the Russian bank Sberbank is “bankrupt”. Oil prices continue to rise.

Ruble – depreciation against the dollar and the euro

The ruble on Monday broke historical records of weakness against the dollar and the euro on the Moscow Stock Exchange due to sanctions imposed on Russia’s invasion of Ukraine.

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From the first second of exchanges, it is necessary to pay 90 rubles to get a dollar on Monday morning, against the last official rate of 83.5 on Wednesday, before the invasion of Ukraine. Against the euro, the exchange rate fell from 93.5 to 101.19 rubles.

Hats were set, forcing a pause in trade. At restart, about fifty minutes later, the fall continued. The greenback traded at 95.48 against the dollar and 107.35 against the euro.

Before the opening of the Moscow Stock Exchange indicated that the ceiling was set at 90 rubles for the dollar and 101.19 rubles for the euro, reaching the limit in the first seconds of the session.

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Russian private banks – European subsidiaries in crisis

The European Central Bank (ECB) on Monday termed the Russian bank Sberbank’s European subsidiary “bankruptcy or bankruptcy”, the largest in the country since the withdrawal of “significant” deposits due to the conflict and sanctions in Ukraine. By Western countries.

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Sberbank Europe AG, which is based in Austria, and its subsidiaries in Croatia and Slovenia have “experienced significant deposits in their reputation due to the impact of geopolitical tensions,” the ECB’s banking supervisor explained in a statement. In the future, the bank may not be able to pay its debts or other liabilities. “

Withdrawals have led to the bank’s “deteriorating liquidity” and “no way” which offers a “realistic opportunity” to bail out the company’s coffers, the ECB continues.

Two major Russian banks, Sberbank and VTB Bank, have been particularly targeted by severe US sanctions since Thursday. Sanctions targeting the Russian banking system, in particular, were strengthened on Saturday by the announcement that some companies would be excluded from the Swift system.

Russian Central Bank – The main interest rate has been raised to 20%

Russia’s central bank announced on Monday it was raising its key rate by 10.5 points to 20% in the face of severe sanctions.

“The board of directors of the Bank of Russia has decided to raise the key rate to 20% per annum,” said the monetary agency quoted by Russian news agencies.

“The Bank of Russia will make new decisions at key rates based on the risks associated with external and internal conditions and the response of financial markets to these risks,” he added, while trying to protect the ruble.

The United States, the European Union and other countries have announced that they will exempt some Russian banks from the Swift International Banking System and any transaction with Russia’s Central Bank.

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Prior to Western sanctions and the invasion of Ukraine, inflation in Russia was already rising, forcing the central bank to raise its key rate several times. The key rate is the key tool to combat inflation.

Oil – The price of a barrel continues to rise

WTI crude oil prices rose more than 6% and Brent more than 5% on Monday, and operators became increasingly concerned about the energy crisis following his invasion of Ukraine following the new Western sanctions against Moscow.

At 0445 GMT, WTI was up 6.27% at $ 97.33 and Brent was up 5.24% at $ 103.06. “The withdrawal of some Russian banks from Swift will disrupt oil supplies because buyers and sellers are trying to figure out how to guide the new rules,” said Andy Lipov of Lipo Oil Associates in Houston.

Operators will closely follow OPEC +’s Wednesday meeting, which brings together thirteen members of the Saudi-led Organization of Petroleum Exporting Countries (OPEC) and ten Russian-led allies. Production.

Blood pressure drops by 7%

British oil company BP plunged nearly 7% on the London Stock Exchange on Monday morning, the day after it announced its withdrawal from Russian company Rosneft due to Russia’s “occupation”. Ukraine.

09:50 After GMT, BP shares fell 6.74% to 353 pence on the London Stock Exchange. For its part, Rosneft, which has a portion of its capital listed on the British market, fell 40.26% to $ 2.80.

Stock markets – European markets plummeted

World markets were red again on Monday, raising fears that energy prices could rise, which could strengthen current inflation following new sanctions imposed on Russia.

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European stock markets fell 08:55 GMT: Frankfurt lost 2.39%, Paris 3.05%, Milan 2.59% and London 1.54%. The European benchmark Eurostoxx 50 index fell 3.18%. At noon, the Swiss stock market SMI lost 0.58%.

Asian markets were the most flexible: Tokyo lost 0.19%, Shanghai 0.32% and Hong Kong 0.24%.

Ash with agencies

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