Collateral Damage
The list of sanctions placed on Russia by the world is too long to list here. It’s guaranteed to place economic hell on Russia, and the world’s strategy looks to be choking them from the inside. The football world has exiled Russia from the game, and Russian citizens are being forced to deal with the crippling economy where the currency is trending towards hyperinflation. Russian stocks have been battered in the Russian stock market, which has now been halted, but they haven’t fared well around the world either.
OFAC, or the Office of Foreign Assets, announced sanctions on Russia over economic assets. One clause has instructed brokers to liquidate their positions in Russian stocks based in the United States, which has had some immense effects on certain tickers. Yandex, a Russian tech company that aids with navigation through machine learning, fell by more than 60 percent because of increased sell positions, and it’s currently halted. This will be a common trend between the tickers we talk about due to the sanctions and the terrible fundamental state of these businesses. QIWI, an online payment service in Russia, is halted and down more than 30 percent post-sanctions. Something that we might see a spike of is investor-related lawsuits due to the rapid decrease in price, but it seems hard to pursue something on the legal ground here. No news has come out regarding when trading will resume on these stocks, but the war is showing us that this might be here to stay. Russia just captured an important port city of Ukraine and is showing no signs of de-escalation, which could present possible bankruptcy for these businesses.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
