It Just Got Real: Russian Stocks Tank In Reaction To Obama Sanctions

It Just Got Real: Russian Stocks Tank In Reaction To Obama Sanctions

By Business Insider on March 22, 2014
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US President Barack Obama (L) holds a bilateral meeting with Russian President Vladimir Putin during the G8 summit at the Lough Erne resort near Enniskillen in Northern Ireland, on June 17, 2013. The conflict in Syria was set to dominate the G8 summit starting in Northern Ireland on Monday, with Western leaders upping pressure on Russia to back away from its support for President Bashar al-Assad. (Photo Credit: JEWEL SAMAD/AFP/Getty Images)

When President Obama first launched sanctions against a handful of Putin “cronies,” the markets laughed at how weak they were.

Nobody’s laughing at Obama’s sanctions now.

The Russian stock market is tanking today, as the MICEX is down 3.7% 2.0% in early going. This comes after Obama introduced sanctions against a new round of Russian officials, as well as a key bank used by Putin’s cronies, Bank Rossiya.

One thing that’s making the sanctions sting is that Visa and Mastercard have announced they’re freezing the accounts of cardholders at that bank.

The ruble is also falling.

The other big move today is that the Shanghai Composite finally caught a strong bid, with stocks rising 2.7%.

Meanwhile, U.S. stocks are slightly higher.

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