**Stock Markets Usually Go Up. Sometimes, They Go Away.** **Trading on the Moscow stock exchange was suspended this past week. It’s the latest reminder to investors that markets aren’t always liquid.** **by Jason Zweig, The Wall Street Journal, 3/4/2022**
**This week, the stock market shut down in Moscow, and Russian shares collapsed on other exchanges, including in London and New York. Exchange-traded funds specializing in Russian stocks are down 90% or more from their highs shortly before the invasion of Ukraine—but, as of Friday, most of them are also frozen....**
**Some Russian companies are listed on other markets. American share rights to Gazprom PJSC, the Russian energy titan, closed at $1.10 over the counter in New York on Thursday, down from $8.97 on Feb. 16. That price was 0.51 times its reported earnings per share over the past four quarters, according to FactSet. Sberbank Russia PJSC closed in the U.S. at 52 cents on Thursday, down from $14.76 on Feb. 16. That’s less than .2 times its earnings over the past 12 months....**
**All this puts Russian President Vladimir Putin in position, if he wishes, to pull off one of the greatest and most brutal trades in the history of investing: With the market for Russian shares stymied, he could nationalize every major company in the country for kopecks on the ruble.** [end quote]
The Russian stock market is frozen. If and when it opens again, would Russian companies honor foreign shareholders’ stock ownership? How long before sanctions are lifted and Russian companies begin selling oil and gas again? Will their main customers have shifted suppliers in the meantime?
All this puts Russian President Vladimir Putin in position, if he wishes, to pull off one of the greatest and most brutal trades in the history of investing: With the market for Russian shares stymied, he could nationalize every major company in the country for kopecks on the ruble.
iirc, Puting has been doing that for years. The sequence is usually decide the CEO is saying things Putin doesn’t want to hear, so toss the CEO in prison, then nationalize the company.
Thu 23 Dec 2004 19.03 EST
Back door Yukos nationalisation perfectly normal, says Putin Mark Milner
Vladimir Putin, the Russian president, launched a strong defence yesterday of the tactics used to renationalise the main assets of the oil group Yukos and lashed out at a US court’s interference in the sale.
On the morning of 25 October 2003, Khodorkovsky was arrested at Novosibirsk airport. He was taken to Moscow and charged with fraud, tax evasion, and other economic crimes. Gessen describes the trial as a “travesty” and “a Kafka-esque procedure”, with the government spending months “on an incoherent account of alleged violations that were criminalized after they were committed, or that were in fact legal activities.” In preparing the case, the government called in Yukos employees for questioning. Pavel Ivlev, a tax lawyer who went along as their attorney, later explained that officials had illegally interrogated him and threatened to arrest him. After leaving the prosecutor’s office, he immediately flew out of the country. He and his family ended up settling in the U.S
How long before sanctions are lifted and Russian companies begin selling oil and gas again?
The sanctions in all likelihood wont be raised till after Putin’s death and a new republic emerges in Russia. This means a defeat for Russia in Ukraine as well.
Congress is beginning a push for secondary sanctions. Meaning those who do business with Russia can not do business with the US, primarily meant to sanction overseas foreign institutions.
Further more oligarchs are going to be targeted for sanctions.
Schumer and Biden are not on board yet, but the members of both parties in the chambers are going to force a vote in the Senate with or without Schumer.
Excuse my French but this is balls to the walls. We can not simply have the Russian economy listing. We must sink it. Regardless of middle of the road ideas for domestic policy.