Ruble Drops Third Day as Bonds Fall on Oil Below $100, Sanctions

The ruble weakened for a third day and bonds fell as crude oil, Russia’s main export earner, traded below $100 a barrel and the European Union prepared to discuss new sanctions.

The currency declined 0.3 percent 37.2315 per dollar by 1:17 p.m. in Moscow. The yield on 10-year Russian local-currency securities rose two basis points to a one-week high of 9.62 percent.

Brent slid for a fifth day, losing as much as 0.4 percent to 98.80 per barrel in London, its lowest since May 1, 2013. Oil and natural gas account for about half of Russia’s state revenue. EU governments are meeting today to consider broadening sanctions, while Ukrainian President Petro Poroshenko said pro-Russian rebels are “constantly” provoking government forces amid a cease-fire announced last week.

“There’s lingering uncertainty in the market, which creates some nervousness,” Vladimir Evstifeev, an analyst at Bank Zenit in Moscow, said in an e-mailed note. “Geopolitical news is controversial, and there’s no confidence in the cease-fire agreement.”

The ruble has retreated 12 percent against the dollar this year, the most among 24 developing-nation peers tracked by Bloomberg after the Argentine peso. The currency lost 0.3 percent against the euro today to 48.2000 and weakened 0.3 percent against the central bank’s basket of dollars and euros to 42.1594.

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