Russian Stocks Tumble With Bonds as Downed Jet Heightens Risks
- RTS Index slides 3.3%, bond yields climb most since August
- Russia is Turkey's second-largest trading partner globally
Why Did Turkey Shoot Down a Russian Warplane?
Russian stocks had the second-biggest drop worldwide and government bonds slid as President Vladimir Putin called Turkey’s downing of a fighter jet close to the Syrian border as a “stab in the back” that would have serious consequences for ties between the two nations.
The dollar-denominated RTS Index closed down 3.3 percent after Putin called the incident a crime and said that Islamic State gets funding from selling oil to Turkey. Turkey said earlier it repeatedly warned the pilots that they were violating the nation’s airspace. The equity slump was steered by Gazprom PJSC, which relies on Turkey for 17 percent of its natural-gas exports outside of the Commonwealth of Independent States, according to BCS Financial Group. Government bonds declined and credit risk rose.