19.08.202509:13:25UTC+00Russian Stocks Extend Rise

In August, the MOEX Russia Index surged to the 3,000 level, reflecting a 10% increase amid optimism regarding a potential resolution to Russia's conflict with Ukraine. This optimism was fueled by a meeting between President Putin and his American counterpart, President Trump, in Alaska, where they discussed possible terms for a ceasefire or conclusion to the invasion. Additionally, the United States convened a summit with Ukrainian President Zelensky and European leaders to consider acceptable terms for peace.

Meanwhile, India signaled its intention to continue purchasing Russian oil despite facing increased tariffs imposed by the United States. This policy bolstered Russian energy companies Rosneft and Lukoil, which achieved trading levels not seen since March and June, respectively. Russian equities demonstrated an extended period of independence from fluctuations in global equity markets and showed minimal reaction to global macroeconomic events. This detachment is largely attributable to a series of Western sanctions isolating Russia's financial sector from global developments.

Furthermore, a slowdown in the previously elevated inflation rate has increased the probability of further interest rate reductions by the Central Bank of Russia (CBR), whose rate currently stands at 18%. However, economic growth for the year is anticipated to decelerate to 1.4%.