Oct. 8, 2025
The Russian stock market responded with its sharpest decline in three years to harsh statements from the Foreign Ministry, which made it clear that hopes for an end to the war in Ukraine had practically vanished.
On Wednesday, the Moscow Exchange Index fell to 2,563.3 points, its lowest since December last year, and has plunged 4.05% since Tuesday’s close, a record low since September 2022.
By 6:35 PM Moscow time, Gazprom shares had fallen 4.1%, Sberbank 4.9%, VTB 4.7%, and Rosneft 2.5%. Severstal shares plummeted 4.9%, and Aeroflot 5%. Rostelecom, Inter RAO, and Magnitogorsk Iron and Steel Works lost more than 5%. Mechel shares plummeted 6.7%.
“Geopolitical factors continue to put pressure on investors,” and the market has been hit by “panic selling,” notes Yaroslav Kabakov, Director of Strategy at Finam. The precipitous decline began after statements by Deputy Foreign Minister Sergei Ryabkov: he stated that relations with the US were “shattered to their foundations,” the Kremlin sees no reciprocal steps from Washington, and the momentum generated by the meeting between Vladimir Putin and Donald Trump in Alaska has “exhausted.”
The day before, Putin himself, at a meeting with General Staff generals, stated that their task “remains the same”—”to ensure the unconditional achievement of all the objectives of the special military operation.”
“After a period of inflated expectations and rising stock market prices, a wave of pessimism has washed over investors,” write PSB analysts. The Moscow Exchange Index has fallen for the fifth week in a row, and compared to February levels, when Putin and Trump’s talks began, it has lost more than 22%, or 1.3 trillion rubles in market capitalization terms.
A prolonged stock market decline is usually a harbinger of unpleasant economic problems, notes Andrey Khokhrin, CEO of Ivolga Capital. Pumped up by trillions in military and weapons spending, which created the illusion of growth in 2023-2024, the Russian economy is rapidly slowing: GDP growth has virtually stalled, at 0.4% year-on-year in July and August. Industrial sectors outside the military-industrial complex are declining: clothing production by 9.1%, furniture by 12.7%, food by 2.1%, and metallurgy by 8.4%.
The World Bank forecasts Russia to grow by only 0.9% this year, 0.8% next year, and 1% in 2027.
The great strategist and human blood drinker, Vlad the vampire is doing wonders for the mafia economy (amongst other things).
“The World Bank forecasts Russia to grow by only 0.9% this year, 0.8% next year, and 1% in 2027.”
Take that with a pile of salt. The mafia economy is collapsing, and Ukraine will make sure that it’s going at high speed.
“remains the same”—”to ensure the unconditional achievement of all the objectives of the special military operation.”
Those mysterious goals that keeping moving every week. It started off with de-nazifying Ukraine and de-militarising Ukraine. Well that’s two goals that will never be met. The first never existed, the second has backfired spectacularly. In 4 years it’s mafia land that’s being de-nazified and de-militarised.