Russian Stock Market in Collapse: New American 'Hell Sanctions' Threaten Oil Exports to China and India

The Russian stock market has undergone a serious decline, reaching its lowest levels since December 2022. The Moscow Exchange index plummeted to 2109.58 points, reflecting growing uncertainty among investors regarding the future of the Russian energy sector and the country's macroeconomic stability.

The main catalyst for the sell-off is the new version of the American bill regarding the so-called "hell sanctions." Although the initial proposals for 500% tariffs were reduced, the new version provides for 100% tariffs on the five largest buyers of Russian oil and gas. Since China and India control about 90% of Russian oil exports, these measures are viewed as a direct threat to Moscow's primary revenues.

The market reaction was immediate. Gazprom shares reported a decline, while companies such as Rosneft, Sberbank, and VTB also lost significant market value. Additional pressure on the sector was exerted by news that China has suspended negotiations on the strategic "Power of Siberia-2" project.

Experts point out that the new version of the bill provides the US President with broad powers. Unlike previous versions, the application of sanctions is no longer tied to the progress of peace negotiations. The text allows the executive branch to impose or lift restrictions based on national interest, making the process more flexible but also more unpredictable.

Although the bill is considered more realistic and is aligned with Donald Trump's positions, it still needs to pass through approval by both houses of Congress. The question remains how quickly the document will be adopted, given the upcoming summer recess of the legislators.