Putin Sanctions Order Spurs Plunge in Russian ADRs - Bloomberg:
"Russian stocks plunged to a three-month low in U.S. trading as President Vladimir Putin signaled that he plans to retaliate against international sanctions threatening to hurt the nation’s $2 trillion economy.
The Bloomberg Russia-US Equity Index fell 2.1 percent to 82.25 in New York yesterday, its seventh drop in nine sessions. The decline pushed the average price of stocks on the gauge to 5.6 times projected 12-month earnings, the lowest in three months. Mining company OAO Mechel and natural-gas producer OAO Gazprom (OGZPY) were the worst performers, each tumbling more than 3.5 percent. Lender OAO Sberbank fell 3.2 percent.
Stocks sank as Putin ordered the government to prepare a response to U.S. and European Union sanctions for his support of a rebellion in eastern Ukraine. The latest round of measures targeted the banking and energy industries with financing restrictions and export bans. Putin is showing no signs of backing down. The deputy head of Ukraine’s National Defense and Security Council said Aug. 4 that he was concerned about a buildup of 33,000 Russian troops and 160 tanks near the border."
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