Mechel criticism rattles investors, heavy trading sends Russian stock markets down
Investors piled out of Russian stocks Friday after the abrupt departure from the country of a foreign oil boss and the prime minister's unexpected severe criticism of a large steel firm.
MICEX, the exchange where the bulk of trading in Russian stocks takes place, plunged 5.5 percent by the close of markets, while the RTS Index lost 5.6 percent to sink to its lowest point since March.After Prime Minister Vladimir Putin's scathing attack on Mechel late Thursday, heavy trading in New York sent the steel and coal maker's stock down nearly 40 percent, wiping more than $5 billion off its value -- though shares rose around 20 percent in early trading in New York on Friday....MORE
In other Russia news (from FT Alphaville):
Investment group alleges $230m Russia fraud
Suspected fraudsters have allegedly stolen $230m from the Russian tax authorities in a complex scheme involving forgery, impersonation and the theft of three investment companies, according to Hermitage Capital Management, formerly the country’s largest foreign portfolio investment manager. The perpetrators allegedly fraudulently re-registered the ownership of the companies before using them to make false tax rebate claims, according to the fund manager.
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