Russia Isn’t the Only Emerging Market Suffering
The pain of sanctions are definitely starting to be felt, and it’s not just Russia being penalized.
What next?
Source: Bloomberg
Make no mistake: The pain of sanctions placed on Russia are definitely starting to be felt.
Its stock market — albeit largely owned by foreigners — is down 40% this month after a significant drop following the invasion of Ukraine early Thursday. State finances may be mostly secure, but oligarchs don’t like market hits either. The country’s sovereign debt yields went sharply higher, both in rubles and in major currencies. Foreigners own more than $60 billion of Russian debt, and the exit door for them just effectively slammed shut with the prospect of more sanctions coming. There is no international market — and precious little domestic demand — for any Russian security now.