Russian ADRs Sink as Merkel Rekindles Sanctions Concern - Bloomberg

Russian ADRs Sink as Merkel Rekindles Sanctions Concern - Bloomberg:



"Russian stocks sank to a four-year low in the U.S. after German Chancellor Angela Merkel blamed the Kremlin for continuing to stir up the Ukraine conflict, damping optimism that international sanctions will be lifted.



OAO Sberbank (SBRCY), the country’s biggest bank, tumbled to a record low, leading a 1.2 percent decline in the Bloomberg Russia-US Equity Index in New York yesterday. The Market Vectors Russia ETF (RSX), the biggest U.S. exchange-traded fund that tracks the nation’s stocks, fell 1.9 percent to $21.12. 




“People are beginning to realize that the sanctions will remain in place until real progress has been achieved in the Ukraine crisis,” Chris Weafer, a senior partner at Moscow-based consulting firm Macro Advisory, said by phone. “Oil is collapsing, the ruble is falling and the economy is slowing. All of those factors combined will have a negative impact on the corporate earnings outlook.”"



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