Ruble, market fall hit by Ukraine crisis

The Russian ruble and stock market fell on Monday under the pressure of rising tension between pro-Russian forces and the Kiev authorities in eastern Ukraine, and as the Russian economy flirts with recession. "Today emotions broke out on the markets with new force," said Denis Davydov, an economist at Nordea bank, quoted by the Interfax news agency. "The further development of events in eastern Ukraine will have a decisive effect on the market trading as long as the outflow of ruble assets continues," Davydov said. Moscow's benchmark MICEX, which is denominated in rubles, fell to 1.49 per cent by 1230 GMT while the RTS, which is denominated in dollars, was down 1.91 per cent. Shares in Gazprom energy giant had fallen 2.31 per cent, while shares in Russia's biggest lender Sberbank fell 1.94 per cent. The Russian ruble fell both against the euro, which climbed to 49.54 rubles, and against the dollar, which rose to be worth 35.82 rubles, according to a news agency.