Russian Markets Stumble as Fuel Shortages Grip Regions

The market selloff reflects a convergence of headwinds, ranging from the impact of Ukrainian drone strikes on critical refineries to a central bank rate cut that failed to soothe investor nerves. Economist Evgeny Kogan characterized the sharp decline as a capitulation, noting a pervasive sense of apathy among traders. Blue-chip entities, including Aeroflot, Alrosa, and retailer X5, have faced margin calls, further deepening the sense of volatility that led the government to cancel a scheduled OFZ bond auction this Tuesday.

Gazprom shares hit a 15-year low, dipping below 100 roubles, following reports of damage to subsidiary infrastructure. While analysts at Sinara investment bank labeled the recent trading session one of the worst since 2022, official rhetoric remains unchanged. Kremlin spokesman Dmitry Peskov dismissed the market turbulence, maintaining that macroeconomic stability is fully secured despite the widening deficit fueled by elevated military spending and a cooling economic growth rate, which decelerated to 1% last year.