Moscow Stock Exchange opens on low note after new US sanctions on Rosneft, Lukoil announced

ISTANBUL

The Moscow Stock Exchange started Thursday with losses after the US announced new sanctions on Russia's largest oil companies, Rosneft and Lukoil.

The MOEX fell 3.38% to below 2,564 points at the open on the fourth trading day of the week, while the dollar-based RTS index fell 3.38% to below 989 points.

The Russian ruble, on the other hand, lost 0.43% to the US dollar, to stand at around 81.77 as of 0710GMT.

Brent crude oil also rose, climbing 1.7% per barrel to $64.12

Shares of sanctioned Rosneft fell 2.87%, while Lukoil dropped 3.26%.

Adding Rosneft, Lukoil, and dozens of their affiliates to its sanctions list, the US cited what it called a "a serious lack of commitment" by Moscow to advancing peace talks aimed at ending the war in Ukraine.

The US Treasury Department said the sanctions aim to tighten pressure on Russia's energy sector and limit "Kremlin's ability to raise revenue for its war machine and support its weakened economy,"

In a statement, the department reaffirmed its commitment to using all available tools to support the peace process, stressing that "the US will continue to advocate for a peaceful resolution to the war, and a permanent peace depends entirely on Russia's willingness to negotiate in good faith."

In addition, the European Commission passed a new sanctions package which includes restrictions on liquefied natural gas (LNG) imports from Russia.

"We just adopted our 19th sanctions package. It targets Russian banks, crypto exchanges, (and) entities in India and China, among others," EU foreign policy chief Kaja Kallas wrote on US social media company X.