March 1, 2022
Russian markets were hammered on Monday as the ruble plunged to an all-time low and stock trading on the local bourse was canceled. Outside the country, losses were fairly limited with S&P 500 futures trading down just 1.3%.
Traders said developments over the weekend will likely drive energy prices even higher, raising the risk of stagflation in the global economy, and many were adding fresh cash to haven assets and volatility hedges.
Russia has become not just uninvestable for new capital, but could trap foreign capital parked in Russia long-term.
Western companies may be forced to cut ties, like BP which warned it could take a write-down of as much as $25 billion from exiting Russia.
At the same time President Vladimir Putin today banned all Russian residentsfrom transferring hard currency abroad, including for servicing foreign loan contracts, potentially putting much of the countrys $478 billion in external debt at risk of default.
OneProSpecial Analyst
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