Russian stocks saw a small bounce
on Monday, while the rouble was steady, after the European Union
decided not to impose more sanctions against Russia for now over
Moscow's actions in Ukraine.
EU foreign ministers agreed to put more Russia-backed
Ukrainian separatists on their sanctions list, but did not
extend measures against Russia itself.
The decision helped the rouble recover after falling early
on Monday as the price of oil, Russia's major export, dropped
more than $1 to just over $78 a barrel.
It has hit after the International Energy Agency on Friday
said it expected downward pressure on oil prices to continue.
At 1410 GMT the rouble was down 0.1 percent against the
U.S. dollar at 47.31, and was 0.1 percent stronger at 59.10
against the euro.
The market shrugged off the central bank's debut auction of
one-year dollar repos, part of a scheme to provide foreign
currency loans to Russian banks and shore up the ailing rouble,
even though the sale drew weak demand.
For most of the day the rouble had been down around 0.3
percent against the dollar and 0.1 percent against the euro, but
rallied after the EU decision, briefly entering positive
territory against the dollar before falling back.
The dollar-denominated RTS stock index was up 0.2
percent at 1,005 points, while the rouble-based MICEX was
up 0.4 percent at 1,506 points.
Investors had been wary ahead of the EU foreign ministers
meeting, although EU officials had earlier said new sanctions
against Russia were not likely at this stage.
Russian President Vladimir Putin came under heavy criticism
at a G20 summit over the weekend, where Western leaders accused
him of continuing to destabilise Ukraine in violation of a
September peace agreement.
At the central bank's auction of 1-year dollar repos, banks
demanded just $87.7 million, out of $10 billion on offer.
The central bank said the low demand showed that a shortfall
of forex had been addressed, while analysts said that it was
negative but not a crucial factor for the rouble.
"All of the focus of investors right now is much less on
this technical shortage of dollars in Russia ... and much more
on the oil prices which are below $80," said Rosbank analyst
Yury Tulinov.
Separately, the Ministry of Finance said on Monday it had
placed $2.1 billion in a 28-day deposit auction, compared with a
limit of $3 billion, in another step by the Russian authorities
to meet heavy demand for foreign currency.
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