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Russian Assets Retreat as Ukraine Clash Revives Sanctions Risk

  • Ruble bucks emerging-market gains to fall as much as 1.7%
  • Russia on Sunday fired on Ukrainian warships near Crimea
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Russian Ships Fire on Ukraine's Navy in Renewal of Tensions
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The ruble and Russian stocks slid the most in emerging markets and borrowing costs jumped as a flare-up in tensions with Ukraine rekindled concerns about fresh sanctions against the Kremlin.

The clash between Russian and Ukrainian warships near Crimea on Sunday came just as the ruble was beginning to stabilize on reports that proposed U.S. penalties could be pushed back. If the tensions continue, the Finance Ministry may be forced to cancel its weekly bond auction on Wednesday, according to analysts at Credit Suisse Group AG.