Russian stock market falls after Moscow threatens strikes on Kyiv
The Russian Foreign Ministry's statement on strikes against Ukraine affected the stock market (photo: Getty Images)
The Russian stock market started the week with a sharp decline, falling to levels last seen in November of last year. Analysts say this was influenced by the Russian Foreign Ministry's statement about planned strikes on "decision-making centers" in Ukraine and Kyiv, The Moscow Times reports.
The Moscow Exchange Index, which includes Russia's largest companies, lost 1.05% by the end of trading on Monday and fell to 2,598 points. During the session, the index dropped to its lowest level since November of last year.
According to Russian analysts, the new wave of sell-offs began after statements by the Russian Foreign Ministry about strikes on "decision-making centers" and command posts in Ukraine.
As reported, the Russian Foreign Ministry also urged foreigners to leave Kyiv, claiming that Moscow's "cup of patience" had allegedly "overflowed." Against this backdrop, shares of Russia's largest energy companies continued to decline.
For example, shares of Rosneft fell by 2.6%, reaching their lowest level since February. Gazprom shares lost 0.8% and are trading at their lowest levels since November 2025. Novatek shares also dropped by nearly 4%.
Investment strategists in Russia say there is nervousness in the market and a lack of stable demand even after local declines.
Since the beginning of the year, the Moscow Exchange Index has already lost 6.5%. In monetary terms, the capitalization of the Russian market has decreased by nearly 400 billion rubles.
Notably, the decline is taking place despite rising global oil prices due to the conflict around Iran. The price of Russia's Urals oil rose to its highest levels since 2014, but this did not help the Russian stock market return to growth.
Analysts link the negative dynamics to the worsening state of the Russian economy and the lack of any progress in negotiations regarding the war against Ukraine.
Specific economic indicators
According to Rosstat (Russia's state statistics agency), Russia's GDP contracted by 0.2% in the first quarter — the first decline since 2023. Twenty-one out of 28 key industrial sectors were unprofitable.
In addition, in May, the Russian government worsened its 2026 economic growth forecast threefold, down to 0.4%. Moscow also expects investment to decline for the second consecutive year.
According to Russian financial experts, the situation on the stock market reflects the accumulation of systemic problems in the Russian economy, which already outweigh the benefits of high commodity prices.
Ukrainian President Volodymyr Zelenskyy spoke about the dire situation in the Russian economy revealed by intelligence.
Analysts also explained why even expensive oil will not save the economy of the aggressor country. This was discussed in a Bloomberg article.
