Few emerging markets have escaped the storms emanating from the eurozone. But few have been hit as hard as Russian equities.

On Thursday, the rouble-denominated Micex index entered bear territory, with a 3.5 per cent fall in Moscow trading, taking the fall from its March high to over 20 per cent. The $-based RTS, which fell 4.4 per cent on Thursday, was already deep in bear land, having breached the 20 per cent level earlier in the week.

Along with the general flight to safety, investors are reacting to the sharp oil price drop which the Greek crisis has prompted by hitting economic growth, notably in the EU,  Russia’s biggest customer. For those who bet on a bounce on Vladimir Putin’s return to the presidency, this is all very painful. Continue reading »