Russian stock exchanges take a tumble over Crimea conflict | Business | DW.DE | 03.03.2014
Russian stock exchanges take a tumble over Crimea conflict
The political escalation surrounding Crimea has not left the Russian stock exchanges unfazed. The two major bourses in Moscow took a dive in early trading, with the ruble also losing more value as the week started.The ruble lost more value, trading at 50 to the euro and 36.85 to the US dollar, both levels never seen before.Investors chucked out Russian shares from their portfolios in large numbers, with natural gas supplier Gazprom being among the prime stocks hit hardest. The company's shares dropped by up to 12 percent after trading started to hit a seven-and-a-half-month low at 122.57 rubles (2.4 euros, $3.3).This is the result of EU and US condemnation on Russia. Foreign investors are pulling out en mass, stock market is crumbling, major companies are going down the drain (gazprom is a huge russian company).On Monday, Russia's central bank sold up to $10 billion, or 2 percent of its gold and foreign exchange reserves, to stem the fall of the ruble, Moscow foreign exchange dealers estimated.
If the EU follows through with trade restrictions on Russia, Russia will lose over 50% of it's trade income since trade with the EU is over 50% of the total trade that Russia does. It's almost 80% of all goods and services trades, 50% is total like... with natural resources and whatever.
The US also threatened to do the same... and that's pretty much all the major trade partners that Russia has.
-But Rainman, what about China?
China is a really bad trading partner to make a financial surplus with for anything that's not natural resources. They're like a natural resource vampire.