THE IMPACT OF THE UKRAINIAN WAR ON THE MOSCOW STOCK EXCHANGE

Abstract

The history of the Russian Stock Exchange is very rich. The first stock exchange was founded in St. Petersburg in 1703, it was a trade in goods. In Moscow, the trading platform was opened more than a century later, in 1839, and trading on Russian stock exchanges began in the 1860. Russia's invasion in Ukraine has roiled global markets. Inflation and the prospect of higher interest rates were already contributing to market volatility. Now, global sanctions and the day-to-day events in Ukraine have made navigating volatile markets even more difficult.
The Russian shares were last traded on the Moscow Stock Exchange on February 25th, when central bank then decided to halt stock trading to protect Russian investors from the impact of Western sanctions imposed as a result of what Russia calls a "special military operation" in Ukraine. The Moscow Stock Exchange resumed trading with shares on 24-th of March, after a month in which it was closed due to the volatility generated by the Russia-Ukraine war, which broke out on February 24-th.
The economic effects of the Ukrainian war will be felt beyond its borders, and those of Russia, and will complicate the overall equation of exiting the crisis and maintaining a sustainable recovery in the short and medium term.