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Russia's Stock Market Crashes After Putin's Partial Mobilization Message

Newsweek
Newsweek
 2022-09-21

Russia's stock market crashed on Wednesday following President Vladimir Putin's announcement of a partial mobilization to support his campaign in Ukraine.

The MOEX Russia Index—the ruble-denominated benchmark of the Russian stock market—sank as much as 10 percent on Wednesday, cutting losses at 2,150, according to data from Trading Economics.

According to the website, which provides economic data for 196 countries, the fall in the Russian stock market is a direct consequence of Putin's call for more troops to fight in Ukraine, Russia's first mobilization since World War II.

On Wednesday, Putin announced a new mobilization campaign which will call up to 300,000 additional soldiers to join the efforts in the neighboring country which Moscow's troops invaded on February 24, Russian news agency TASS reported. The Russian president fell short of declaring a full, national draft, calling instead for those with military experience to step forward and join Moscow troops in Ukraine.

https://img.particlenews.com/image.php?url=3t7Rcp_0i44GD1q00
Vladimir Putin speaks during the concert marking the 100th Anniversary of Karachay-Cherkessia, Adygea Republic and Kabardino-Balkarian Republic, at the Grand Kremlin Palace, September 20, 2022, in Moscow, Russia. Russia's stock market crashed on Wednesday after Putin announced a partial mobilization. Contributor/Getty Images

In a videotaped address to the nation, Putin said Russia's goal in Ukraine had not changed, but calling up reservists was now "necessary and urgent" because Western countries had "crossed all lines" in their support to Ukraine, especially in their provision of weapons and military equipment.

The MOEX Russia index already tanked yesterday after the Kremlin confirmed that it's moving to annex Ukrainian territory through a series of referendums in the regions of Luhansk, Donetsk, Kherson, and Zaporizhzhia, according to Trading Economics. The annexation could come as soon as next week.

If those territories were to be annexed, Russia has said that it will consider any Ukrainian attack on those areas as one against Russian territory.

"If the territorial integrity of our country is threatened, we will certainly use all the means at our disposal to protect Russia and our people," Putin said on Wednesday. "This is not a bluff."

The possible escalation of the conflict is what worries investors, Trading Economics said.

"The annexation is seen by many as serious means of escalation, giving grounds for the Kremlin to consider Ukraine's recent counterattack an aggression on Russian soil with Western weapons," according to the website.

Another factor that played a role into the plunging of the Russian stock market was the announcement that the country will tax exports to raise 3 trillion rubles (over $49 billion) to cover its incoming budget deficit.

After resisting for months to Western sanctions, the Russian economy is now starting to show signs of a significant decline, as decreased energy exports to Europe bring consequentially lower profits.

Update 9/21/22, 9 a.m. ET: This article was updated to offer more context.

Comments / 327

Mike
09-21

young Russians.its time to take your country back from a tyrant.your father's and grandfathers tried in the 1990's it's up to you to complete the job.your country is in natural resources.it can and will be one of the richest countries in the world and nato don't want to invade your country and western Europe don't want you any harm .

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Vegetation eats C02 !!
09-21

I swear the whole world is witnessing the stupidest leadership it has ever known from practically every corner of the world! They need to all be rounded up and put into an insane asylum.

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C3_Griller
09-21

he has no decent choices or way out of this mess. Retreat and he's doomed, keep fighting and risk further internal rebellion, use nukes and his country suffers as a total outcast. An assassination by one of his close staff members would be doing Russia and Vlad a favor

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