Russia's MOEX Stock Index Plunges 50% After Putin Orders Military Action In Ukraine

Russia's benchmark stock index MOEX suffered its worst single-day crash since its inception on Thursday after Russian President Vladimir Putin ordered military action in Ukraine. In a televised address early Thursday, Putin said the action comes in response to threats coming from Ukraine. Russian forces fired missiles at several cities in Ukraine and landed troops on its coast on Thursday, officials and media said, after President Vladimir Putin authorised what he called a special military operation, news agency Reuters reported.

Russia's benchmark index Moscow Exchange MOEX dropped as much as 45.22 per cent or 1,394 points to 1,689 and the RTSI index plunged a whopping 49.78 per cent.

Shares in the country's major companies like Gazprom, Lukoil, VTB Bank and Magnit, the country's largest food retailer dropped over 35 per cent in Russia.

Meanwhile, European markets also opened with deep cuts with Germany's DAX falling nearly 5 per cent, France's CAC40 index dropping 4.7 per cent and UK's FTSE 100 down over 3 per cent.

The first explosions sounded in Ukraine’s cities before dawn Thursday as Russian President Vladimir Putin launched his long-anticipated military operation in Ukraine.

U.S. President Joe Biden declared that the world will “hold Russia accountable.” NATO Secretary-General Jens Stoltenberg condemned Russia’s action as a violation of international law and a threat to European security.

Ukraine’s foreign ministry said Russia’s intent was to destroy the state of Ukraine, a Westward-looking democracy intent on moving out of Moscow’s orbit.