Moscow Exchange Index Drops 5.7% Below 2,000 as Russia’s Wartime Economy Frays
Updated
Updated · UNITED24 Media · Jul 27
Moscow Exchange Index Drops 5.7% Below 2,000 as Russia’s Wartime Economy Frays
2 articles · Updated · UNITED24 Media · Jul 27
Summary
July 16 trading sent the Moscow Exchange Index down 5.7%, pushing it below 2,000 points for the first time since October 2022 after opening under 1,900.
A smaller-than-expected Russian rate cut triggered the latest selloff, reinforcing investor fears over persistent inflation, rising state spending and possible new sanctions on Russia’s oil sector.
The slide has broadened into a five-month rout: the index is down more than 31% from its March 9 peak of 2,904.39, about 27% this year and over 55% from its 2021 high.
Oil-sector damage and weak shareholder returns are deepening the pressure, with Ukrainian strikes knocking 42.7% of refining capacity offline in early July and Gazprom withholding dividends for a fourth straight year.
Capital flight by Russians themselves now adds to the strain, with Bloomberg estimating tens of billions of dollars have left since early 2026 as investors brace for weaker profits and more bankruptcies.