The Moscow Stock Exchange fell to its lowest level since 2022 due to a number of factors
The Moscow Exchange Index plummeted 5.7% during trading on July 16 and fell below the 2,000-point mark for the first time since October 2022. Analysts attribute the sharp decline to worsening economic expectations, sanctions pressure, and growing uncertainty in the Russian market.
The index’s decline came amid intensified strikes by the Ukrainian Armed Forces against Russia’s fuel and energy sector and oil production, as well as a record increase in the country’s federal budget deficit.
Among the biggest losers on July 16 were shares of VK, whose platforms—the Max messenger and the “VKontakte” social network—were removed from the Google Play app store for Android devices. Previously, VK’s apps had already disappeared from Apple’s App Store without any official explanation.
Other underperformers in trading included:
- “Polyus”—Russia’s largest gold producer;
- Surgutneftegaz;
- Rusal;
- AFK “Sistema.”
Gazprom shares fell to 83.98 rubles per share during the day—a record low. Prior to this, the gas corporation’s shares had last hit their lowest price on October 24, 2008, when they were trading at 84 rubles.
The Moscow Exchange index reached its record high for 2026 in March: on March 9, the index stood at 2,904.39 points. Compared to that high, the index had fallen by more than 31% as of July 16. The collapse, now in its fifth consecutive month, coincides with an increase in the intensity and effectiveness of drone attacks on Russian territory: strikes on oil refineries and energy facilities in the country have reduced oil production and caused a fuel shortage.
The budget situation is also adding pressure to the market. By the end of 2026, Russia’s federal budget expenditures and deficit could exceed the official plan by more than one trillion rubles ($12.77 billion). Expenditures are expected to total 45.11 trillion rubles instead of the 44.07 trillion rubles budgeted, while the revenue forecast remains unchanged at 40.28 trillion rubles. As a result, the budget deficit could rise to 4.83 trillion rubles, up from the planned 3.79 trillion rubles (1.6% of GDP).
As a reminder, the bill on sweeping sanctions against Russia received a fresh impetus following the death of Senator Lindsey Graham. The White House has stated its readiness to support the legislation, which calls for increased economic pressure on Moscow.
On the evening of July 11, Republican Senator Lindsey Graham of South Carolina and ally of Donald Trump died in the U.S. at the age of 72. According to the politician’s office, he passed away following a sudden and brief illness.
