The Central Bank of Russia said stock market trading will resume on Thursday for the first time since the country invaded Ukraine a month ago.
Trading in 33 companies in the Moscow Exchange Index, including Gazprom, Lukoil, Sberbank and VTB Bank, will be permitted from 9:50 to 14:00 Moscow time. There will be a ban on short sales for these securities.
The Russian economy has been rocked by Western sanctions. The discount on the Urals grade of oil produced in Russia to the international Brent grade stands at over $30 per barrel, reflecting not just the fact the U.S. and the U.K. have barred the importation of Russian oil, but that it’s tough for companies that want to trade to get the necessarily credit and insurance in order to do so.
They might perform better than the 90%-plus wipeout in leading Russian securities traded overseas. For one thing, the trading will be in rubles, rather than U.S. dollars, as the dollar
has appreciated some 20% since the Moscow Exchange last traded stocks. More importantly, foreign investors won’t be able to sell securities on the Moscow exchange.