Graham's proposed 'bone-crushing' sanctions rattle Russian markets before passage
Photo: The Moscow Exchange building in Moscow, Russia (Getty Images)
Russia's stock market plunged after reports about a new US sanctions bill, even though the legislation has not yet been passed. Investors have already begun selling off shares amid concerns over the potential impact of fresh restrictions, The Moscow Times reports.
During trading on July 15, the Moscow Exchange Index fell to 2,109.58 points, its lowest level since December 19, 2022.
Despite global oil prices climbing to a one-month high, the Russian market continued to decline. The index was down nearly 3% on the day, bringing its losses since the start of the year to 23%.
As of 3:49 p.m. Moscow time, Gazprom shares had fallen by 2%. Earlier in the session, the stock hit its lowest level since 2008 following reports that China had suspended talks on the proposed Power of Siberia 2 gas pipeline.
The selloff spread to other major Russian companies. Shares of Sberbank fell 1.5%, VTB dropped 3.8%, Rosneft lost 2.9%, Aeroflot declined 2.6%, and Severstal fell 4%. The steepest losses were recorded by VK, whose shares plunged nearly 7% after the state-backed messaging app Max was hit by sanctions.
According to Freedom Global analyst Vladimir Chernov, the main driver of the selloff was reports about a new US sanctions bill targeting Russia.
The legislation, drafted by the late Senator Lindsey Graham, would impose 100% tariffs on India and China if they continue purchasing Russian oil.
The bill also предусматриes potential restrictions on Russia's central bank, major lenders including Sberbank, VTB and Gazprombank, as well as measures targeting Russia's shadow fleet, oil transportation, and the Yamal LNG and Arctic LNG projects.
Graham's sanctions
Following Senator Lindsey Graham's death, the bill proposing sweeping sanctions against Russia gained new momentum, with the White House confirming its willingness to support the legislation.
US President Donald Trump said he believes the chances of the bill being passed are "quite high."
If enacted, the updated legislation would require the US president to impose sanctions and tariffs of up to 100% on countries and companies that purchase Russian energy products or help Russia circumvent existing restrictions.
According to Vladyslav Vlasyuk, the Ukrainian president's commissioner for sanctions policy, the bill combines individual and sectoral sanctions aimed at Russia's financial and energy sectors while also closing loopholes used to evade existing restrictions.
