Russian stock indices open higher on Ukraine talks hopes, LUKOIL report
In short
The Moscow Exchange and RTS indices rose at the opening of trading on Monday, with Interfax reporting a 0.7% gain and TASS reporting 0.6%. Interfax attributed the rise to hopes of lower geopolitical risks and a continued negotiating track on a Ukraine settlement, with cheaper oil acting as a constraint. LUKOIL shares led gainers after a New York Times report that Russia-US talks include discussion of a multibillion-dollar sale of the company’s foreign assets.
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Russian stock indices opened higher on Monday. Interfax reported that within a minute of the main session opening on the Moscow Exchange, the Moscow Exchange index had risen 0.7% to 2,293.46 points and the RTS index 0.7% to 865.42 points. TASS reported that the two indices were up 0.6% at the opening of trading, a slightly smaller figure than Interfax’s. [ 1 , 2 ]
Interfax attributed the rise to hopes of a reduction in geopolitical risks and the continuation of a negotiating track on a Ukrainian settlement. It said the market was held back by falling oil prices, with the December Brent futures contract dropping below $101.5 per barrel, and by continuing tensions in the conflict with Ukraine. [ 2 ]
Among index stocks, Interfax reported that LUKOIL shares led gains with a 2% rise, followed by Aeroflot at 1.8% and T-Technologies at 1.3%. NOVATEK rose 1.2%, Gazprom 1.1%, Tatneft 0.9%, VTB 0.9%, ALROSA 0.7%, Rusal 0.7%, VK 0.7%, PhosAgro 0.7%, Inter RAO 0.6%, AFK Sistema 0.4%, Polyus 0.4%, Rosneft 0.3%, Sberbank 0.3%, PIK Group 0.3%, Surgutneftegas 0.2% and 0.4% for its preferred shares, and MTS 0.2%, according to the agency. Bank Saint Petersburg shares fell 7.5% after trading ex-dividend for the first half of the year. [ 2 ]
Interfax tied LUKOIL’s rise to a New York Times report that Russia-US talks on settling the conflict around Ukraine include discussion of a multibillion-dollar oil deal, possibly the sale of LUKOIL’s foreign assets, including a network of oil fields, refineries and filling stations outside Russia. The newspaper’s sources said the deal could be completed before the conflict ends, and that Putin raised it at a Kremlin meeting with Steve Witkoff and Jared Kushner on 5 September, proposing to complete it to demonstrate the possibility of business cooperation between Russia and the United States. The documents contain no confirmation of the report from the companies or either government. [ 2 ]
Interfax also noted that the Bank of Russia’s official dollar rate set from 3 October is 83.4839 rubles, up 23.85 kopecks. [ 2 ]
Why it matters
The opening move shows Russian equities trading on signals from diplomatic contacts rather than company news, with one reported oil-asset deal able to move a leading stock. If borne out, a link between Ukraine settlement talks and a multibillion-dollar oil transaction would matter to holders of Russian energy assets, though the documents offer no confirmation from the companies or governments involved.
Key facts
- Interfax reported the Moscow Exchange index rose 0.7% to 2,293.46 points and the RTS index rose 0.7% to 865.42 points within a minute of the main session opening. [ 2 ]
- TASS reported the Moscow Exchange and RTS indices were up 0.6% at the opening of trading. [ 1 ]
- LUKOIL shares led index gainers, up 2%, followed by Aeroflot at 1.8% and T-Technologies at 1.3%, according to Interfax. [ 2 ]
- Bank Saint Petersburg shares fell 7.5% after trading ex-dividend for the first half of the year, Interfax reported. [ 2 ]
- Interfax said the December Brent futures contract fell below $101.5 per barrel, and cited continuing tensions in the conflict with Ukraine as a constraint on the market. [ 2 ]
- The Bank of Russia’s official dollar rate set from 3 October is 83.4839 rubles, up 23.85 kopecks, Interfax reported. [ 2 ]
- Interfax attributed the gains to hopes of a reduction in geopolitical risks and the continuation of the negotiating track on a Ukrainian settlement. [ 2 ]
Confirmed by several sources
Still unclear
- The size of the opening gain differs between the two outlets, at 0.6% for TASS and 0.7% for Interfax. The outlets give different figures, apparently measured at different moments; neither document explains the difference.
- The reported Russia-US discussion of a multibillion-dollar oil deal involving LUKOIL’s foreign assets, including a Kremlin meeting on 5 September with Steve Witkoff and Jared Kushner and a possible sale of oil fields, refineries and filling stations outside Russia. Interfax cites The New York Times, which based the account on unnamed sources; the documents contain no confirmation from the companies or governments involved.
What local media are saying
Timeline, local time
- President Vladimir Putin raised the question of an oil deal at a Kremlin meeting with Steve Witkoff and Jared Kushner, according to sources cited by The New York Times and reported by Interfax. [ 2 ]
- The Moscow Exchange index was up 0.7% at 2,293.46 points and the RTS up 0.7% at 865.42 points, Interfax reported. [ 2 ]
- TASS reported that the Moscow Exchange and RTS indices were up 0.6% at the opening of trading. [ 1 ]
- Interfax published its report on the opening of the main session. [ 2 ]