Following the drone attack on Moscow, the Russian stock market continued its sharp decline. The shares of energy companies, including Gazprom and Rosneft, suffered the most significant drops. The reason cited is the shutdown of oil refineries and a deterioration in investor sentiment.
After another massive attack on Moscow on June 18, the Russian stock market began to plummet rapidly. The Moscow Exchange Index fell by at least 2.32%, marking the largest single-day drop since October of last year.
This information is reported by The Moscow Times.
Russian Stock Market Collapses After Strike on Moscow
Following the successful Ukrainian strike on Moscow, the Russian stock market experienced severe volatility. Specifically, during the trading session, the index dropped to a low of 2425.52 points, the lowest level since December 2024.
Russian analysts indicate that the obvious cause for the market’s decline is the Ukrainian UAV raid on Moscow.
Among the leading decliners were the shares of Gazprom Neft, which owns the attacked Moscow Oil Refinery.
This facility, which supplied approximately 40% of the Russian capital’s fuel needs, halted its production capacity at the beginning of the week. Additionally, the Taneko plant in Nizhnekamsk, as well as the Kuybyshev and Volgograd refineries, have also ceased operations.
Russian analysts lament that Ukrainian strikes on oil processing facilities are increasingly impacting asset sales and fueling inflation in the Russian Federation.
Market sentiment is further pressured by declining global oil prices following an agreement between the US and Iran, as well as the risks of intensified international sanctions against the Russian Federation.
Rosneft shares lost 4% and dropped to their 2023 lows.
Gazprom securities depreciated by 3.2%, and they are now approximately 1% away from updating their historical low recorded in 2009.
A decline in the value of shares of other major companies was also recorded: VTB lost 4%, Sberbank — 1.5%, Severstal — 3%, Aeroflot — 1.7%.
Shares of development groups lost nearly 4% each.
Overall, the Russian market has contracted by 12% since the beginning of the year. And since the start of negotiations between the Kremlin and the administration of Donald Trump, the decline has reached 25%.
Moscow Strike on June 18: Key Details
We remind you that the morning of June 18 in Moscow and the Moscow Oblast began with a massive drone attack, which caused panic among local residents. The city’s mayor, Sergey Sobyanin, announced that the air defense system had shot down 43 drones heading towards the capital. Due to the threat, temporary restrictions on takeoffs and landings were imposed at Moscow’s Vnukovo, Sheremetyevo, Domodedovo, and Zhukovsky airports.
Despite statements from Russian authorities about intercepting targets, several UAVs reached the Moscow Oil Refinery. According to local residents, the impact resulted in several reservoirs catching fire at Moscow’s largest oil processing facility, with columns of flame and thick smoke rising into the sky.
The repeated successful targeting of the Moscow Oil Refinery by the Ukrainian Defense Forces was also confirmed by the advisor to the Minister of Defense of Ukraine, Sergey Sternenko. Meanwhile, numerous videos from eyewitnesses are circulating on social media, showing drones flying over high-rise buildings and complaining about the ineffectiveness of air defense operations.
On this occasion, Ukrainians created a host of witty memes.
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