Kogan Describes Russian Stock Market Crisis as Crisis of Despair

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Russian Stock Market Slump: Investors Lack Reasons to Buy Shares

The Russian stock market is experiencing one of its longest periods of decline in recent years. The market is under pressure from rising fuel prices, which are pushing towards a tighter monetary policy. Alexei Zabotkin, Deputy Governor of the Central Bank of Russia (CBR), has identified the increase in fuel prices as a significant factor in the decision-making process regarding interest rates. Economist Evgeniy Kogan believes that a statement from the CBR indicating no further rate hikes are planned could help stabilize the situation.

"The market needs to hear some positive news. Theoretically, the CBR can either amplify the negativity or give investors a glimmer of hope," Kogan said.

The Moscow Exchange Index has dropped from around 2,900 points to 2,000 over the past three months, a decline exceeding one-third. This is more than just a correction, and investors have plenty of reasons to sell securities due to a range of negative factors.

"When will the falls stop? Clearly, when the bond market calms down. As we recall, everything started with it," Kogan wrote in his channel on "MAXS" (a Russian social media platform).