European Bank Stocks Down

European Bank Stocks Down by Andrew Blumer last updated on March 28, 2022

Stocks of European bank has repeatedly tumbled amid the Russia-Ukraine war. Investors and leaders have cut ties with Moscow showing support for the Western sanctions on the country.

The significant stocks affected include Raiffeisen of Austria, Societe Generale of France and UniCredit of Italy. The drop was double-digit for these at one point before recovering slightly.

The United States has announced a ban on oil imports from Russia and this is assumed to increase energy prices. Experts believe the inflation could be followed post-COVID recovery may slow down.

Meanwhile, the Russian currency ruble has witnessed a sharp decline against the USD and this is believed to be capital erosion of banks.

Among the other developments of the war, Russia has blocked Instagram in the country and called for labeling the parent company Meta an extremist organization as it allowed hatred posts on the platform against Russian citizens and Russian military personnel. Earlier, the country banned Facebook and limited Twitter access.

Communications regulator stated the ban will be immediately affected as messages posted on the platform provoked and encouraged violent actions. Any ban on WhatsApp was not mentioned in the official statement.

With the blocking, about 80 million people in Russia will be affected and they may not be able to connect with one another through the platform.

Meanwhile, the US and most of its allies have revoked the trading status of Russia banning imports of products like diamond and vodka. President Biden said they will continue penalizing wealthy Russians having ties with their president. He added that Russia may lose export revenue of over $1 billion.

Luxury goods exported to Russia have simultaneously been banned by the countries. Some of the luxury goods sought by rich people in Russia include high-end alcohol, expensive apparel, luxury vehicles and cost watches.

Biden further mentioned that they will ensure Ukraine gets the weapons to fight against Russia and the people will receive both money and food. Moreover, the Ukrainian refugees will be welcomed in America with open arms.

He stated that Russia will never win against Ukraine as the world is united and standing with Ukraine.

However, he confirmed NATO forces will not fight against Russia in Ukraine as direct confrontation may lead to another world war and this needs to be prevented.

Earlier this week, Russia pledged to be overcoming the sanctions of Western allies on it and the country will become self-sufficient.

The war has entered the third week and Russia is likely to launch a massive attack on the capital city Kyiv in a couple of days.