Reuters
Russian assets firmed yesterday, buoyed by a report that the European Union might review sanctions imposed against Moscow over its role in the Ukraine crisis and by positive economic data from China, a major market for Russia’s raw materials.
The dollar-denominated RTS index was up 0.6% at 1,159 points, while its rouble-based peer MICEX traded 0.4% higher at 1,418 points.
The daily Kommersant, citing an unnamed EU source, reported the 28-nation bloc could review its economic sanctions against Russia as early as Septembert 30.
The EU has previously indicated it could scrap sanctions on Russia if a review to be carried out by the end of September shows that a peace plan in Ukraine is being implemented.
A fragile ceasefire has been broadly holding in eastern Ukraine since September 5, though pro-Russian separatists and the Kiev government remain far apart on the future status of rebel-held areas.
More than 3,000 people have been killed since the conflict erupted in eastern Ukraine in April.
“Despite the fact that there has been no official confirmation of the (Kommersant) report, for an oversold market it has been enough to go up,” Andrei Dirgin, head of research at Alfa-Forex in Moscow, wrote in a note.
Several waves of sanctions by the EU and the US have sent Russian equities and the rouble lower in recent months, with the RTS shedding all of its mid-year gains after the Ukraine conflict escalated in late summer.
Blue chips badly hit by the sanctions led yesterday’s gains, with Sberbank trading 0.9% higher and Rosneft adding 0.5%. Novatek, hit by US sanctions, was 1.6% higher.
In another boost for Russian assets, China’s factory activity data came in stronger than expected, boosting Moscow’s metal and steel companies for whom China is a major market.
However, trading was restricted for shares of coal-to-steel group Mechel after they tumbled nearly 30% in the previous session following a comment by Economy Minister Alexei Ulyukayev that bankruptcy may be the only option for the debt-ridden miner.
The rouble was 0.3% stronger against the dollar at 38.57 and traded virtually unchanged on the day at 49.69 versus the euro.
This left the currency 0.1% stronger at 43.60 against the dollar-euro basket the central bank uses to gauge the rouble’s nominal exchange rate.
