The Russian stock market has fallen more than 2%

Falling market April 24 reached 3%. Total for the current week, the reduction was 4.5 % on the RTS . Starting local military operations in Ukraine and hastily declared exercises near its borders forced investors to sell assets denominated expecting serious economic sanctions from the West. These sanctions and the weakness of Russia's economy may omit indices by 10% in five weeks .
The stock market collapsed on April 24 due to exacerbation of tensions in Ukraine.

Following the auction , the MICEX index fell by 2.15 % to 1300.54 points, the RTS index - 2.25 % to 1145.66 points. So low , the MICEX index was not closed month , from March 24 . By the fall of 18.00 reached 3% of RTS.Market has fallen continuously all this week . On Friday, the indices gained around 2% for the first few minutes of trading , reacting to the outcome of the quadripartite meeting of foreign ministers of Russia , the U.S., EU Ukrainyi in Geneva , which, in contrast to the dominating strength , most observers were received with relief. But the vagueness and ambiguity of the agreements adopted did not hesitate to express themselves . The confrontation between the authorities and the Kiev separatists from the East did not stop . April 22 was declared the active phase of the antiterrorist operation in Ukraine. On Thursday, the opposition came into the hot phase .As a result, compared with Friday's closing levels , April 18, as at close of trading on Thursday, the Russian stock market indicators recorded a loss of 4-4.5 %.In the course of the day Security Service of Ukraine (SBU ) said that the situation in Slavyansk not controlled, and extended military operation throughout the south- east of the country . In response, the self-proclaimed People's Republic of Donetsk announced a general mobilization , saying that it is a civil war. Activists self Slovyansk occupied buildings city police , Security Service , the City Council , hospitals, hotels .In armed conflicts were first victim.The flames were fanned statements by Russian President Vladimir Putin that the Kiev authorities violated the Geneva Conventions do not disarm and legalize radicals and conduct " punitive operations ".Drop indexes accelerated after the announcement of Russian troops conducting exercises in the border regions of Ukraine ."From now on the border with Ukraine began teaching areas battalion tactical groups combined arms southern and western military districts. Work out issues committing troops march under their own power , and deployment to perform assigned tasks . - Defense Minister Shoigu. - In addition, the aircraft will perform flights to simulate the near the state border . "Investors have no choice as to sell Russian stocks by fear of the West new sanctions against Russia , which now have become more realistic . Representative of the head of European diplomacy , Catherine Ashton, Michael Mann , said in Brussels on Thursday that the European Union continues to work on the third stage of sanctions against Russia in connection with the crisis in Ukraine and the next discussion will take place at a meeting of the EU Council of Ministers of Foreign Affairs on May 12. "The main reason for concern investors lies in the fact thatnew sanctions may be economic in nature and hurt the already concrete Russian companies , while the previous had a political motive , "- says analyst " Veles Capital "Alexander Kostjukov .Teaching in Russia forced Ukraine to suspend a security operation. As reported the publication KyivPost, « according to Ukrainian intelligence , risk crossing the border by Russian troops has increased dramatically ." Therefore, at the end of trading indicators could barely grow . This enables analysts to rely on temporary stabilization of markets on Friday ."The dynamics of trading on the Russian market on Friday will depend on Russia's reaction to the development of the conflict and the Western response to the statements of our politicians. - Says a junior analyst " Investkafe " Roman Hrinchenko . -In the absence of signals of a further escalation of the conflict can be expected that domestic sites try to play Thursday's decline . "" An attempt to drop significantly below 1300 points on the MICEX indicates that the major players are not ready for significant sales - says Kostjukov . - Based on the dynamics of the evening trading , it can be concluded that the Friday show lateral dynamics in the absence of expanding the scope of military operations in eastern Ukraine . We believe that the sell-offs will be less prone to dividend paper, such as " Nickel ", " Lukoil ", "Bashneft ", " E.ON Russia .""Our expected trading range of 1310-1320 on the MICEX index was broken - says Head of asset management Absolut Bank Ivan Fomenko. - We now expect that the Russian paper stabilize, which could even lead to an increase in the index on the last business day of the week . Expected trading range on the MICEX index 1310-1320 . "But in the coming days and weeks, the market will continue to be influenced by a number of negative factors. " Positive developments can hardly wait - believes head of analytical department of the Criminal Code " Russian Standard " Sergei sovereign. - First, the geopolitical situation escalates . Second, the value of the seasonal factor in May is usually a decrease in our international markets and many investors away on vacation . The third factor - is certain administrative pressure on Western governments funds to limit the purchase of Russian securities , and as Asian money, which many expect , these investors make decisions slowly. There are macroeconomic factor: even if the recession will not slow down and macroeconomic indicators and corporate earnings , except for certain industries . "The only thing that may provide some support for the Russian stock market - is that he has this year dropped hard enough . But possible geopolitical improvements will cause only temporary " kickbacks ."