Ruble, Russian Stocks Surge as Medvedev Halts Georgia Offensive
Posted by: Joshuah in War & Rumors of WarThe ruble surged the most in seven years, Russia’s Micex Index climbed, and the cost of protecting the country’s bonds fell after President Dmitry Medvedev ordered a halt to the military operation in Georgia.The 30-stock Micex erased a decline of as much as 2 percent and oil extended its drop after Medvedev said military actions in Georgia had achieved the country’s goals.
Russian shares slumped to a 22-month low and the ruble fell the most in more than three years on Aug. 8 as the country sent tanks, troops and warplanes into Georgia in what it said was a response to an offensive on South Ossetia.
“Medvedev’s decision to halt Russia’s military operations triggered some frenzied buying,” said Julian Rimmer, head of sales trading at UralSib Financial Corp. in London. “There has also been some institutional money sitting on the sidelines waiting for the moment to commit, and the news headline provided it.”
The Micex added 2.3 percent to 1,445.27 at 1:44 p.m. in Moscow, trimming its 2008 drop to 23 percent. The dollar- denominated RTS Index rose 3.4 percent to 1,802.04.
Russian forces rolled deep into Georgia proper yesterday and took several towns and a military base. Georgian television showed footage today of burning buildings that it reported was a result of Russian bombing of the central city of Gori.
“The aggressor has been punished,” Medvedev said on state television. Russia has secured the safety of Russian peacekeepers and citizens in the disputed Georgian regions of South Ossetia and Abkhazia, the president said.
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