The Russian stock market and ruble tumbled on Monday as geopolitical tensions have soared over fears that Russia may attack Ukraine.
Stocks plunged by over four percent following two weeks of steady decline, while the Russian currency fell to its lowest point in more than a year against the dollar at 78 rubles.
Western officials were set to meet Monday in a bid to coordinate their response and compile a battery of sanctions against Moscow if Russia invades Ukraine.
“We expect Russian equities to extend losses today due to an escalation in geopolitical tensions over the weekend,” analysts at Alfa Bank said.
Renaissance Capital said in a note to clients that the ruble could fall up to 20 percent to the dollar in the event of a military escalation.
Tensions are rising over Russia’s deployment of some 100,000 troops at its neighbour’s borders.
Britain and the United States have ordered home some staff and their relatives from their embassies in Ukraine.
Moscow insists it has no intention of invading.
Several rounds of talks between Russia and the West have so far failed to ease tensions.
The current fears of a Russian invasion follow Moscow’s 2014 annexation of Crimea from Ukraine.
