The Russian stock market has fallen to its lowest level in a year and a half following the strongest drone attack on Moscow since the start of the full-scale war, according to The Moscow Times.
As of mid-Thursday, the Moscow Exchange index dropped by 2.32%, marking the sharpest daily decline since October last year. During trading, it fell to 2,425.52 points — the lowest level since December 2024.
Analysts link the decline primarily to the consequences of Ukrainian drone attacks and new risks for Russia’s oil refining industry. Among the biggest losers were shares of Gazprom Neft, which owns the Moscow refinery that caught fire due to the drone strike. Since the beginning of the week, the refinery — which supplies about 40% of fuel to the Russian capital — has halted production. Earlier, refineries in Nizhnekamsk (TANECO), Kuybyshev, and Volgograd also suspended operations.
Amid reduced fuel production in Russia, concerns are growing about accelerating inflation, which could complicate further interest rate cuts by the Central Bank of Russia.
Additional pressure on the market comes from falling global oil prices following agreements between the United States and Iran, as well as expectations of tighter sanctions against Russia.
Shares of Rosneft fell by 4%, Gazprom by 3.2%, VTB by 4%, and Sberbank by 1.5%. Stocks of Severstal, Aeroflot, and major Russian construction companies also declined.
Since the beginning of the year, the Russian stock market has lost 12%, and compared to February 2025 — when the Kremlin began negotiations with the Trump administration — the decline has reached 25%.
