Russian Stocks Fall to Record Lows Amid New U.S. Sanctions Bill

On July 15, the Moscow Exchange index dropped to 2109.58 points, marking the lowest level since December 19, 2022. Since the beginning of the year, the index has lost 23%, despite rising oil prices reaching a monthly high. Shares of Sberbank fell by 1.5%, VTB by 3.8%, Rosneft by 2.9%, Aeroflot by 2.6%, Severstal by 4%, and VK shares dropped by 7%. The primary reason for the decline was reports of a new U.S. bill on 'hellish sanctions,' which includes 100% tariffs for India and China purchasing Russian oil. Previously, even higher tariffs were planned. Analysts note that this creates significant risks for exports to China and India, which buy 90% of Russian oil. Economic growth in Russia has virtually stalled, inflation is rising due to the fuel crisis, which could lead to further economic slowdown. On July 15, Gazprom shares hit their lowest levels in 17 years amid news of the suspension of negotiations with China regarding the 'Power of Siberia-2' pipeline.