Russian stocks plunge as investors fear sanctions if Russia invades Ukraine

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Russian stocks plunge as investors fear sanctions if Russia invades Ukraine

Russian stocks fell to its lowest level in more than a year, as investors feared the country might impose sanctions if the country invades Ukraine.

The Russian RTS lost 9%, with aluminum giant Rusal RU: RUAL losing 8% and gas producer Gazprom RU: SIBN dropping 8%.

The ruble RUBUSD fell more than 1.5% to its lowest level in more than a year.

The families of U.S. personnel were ordered to leave Ukraine over the weekend by the U.S. State Department. With the US and UK withdrawing some embassy staff from Kiev, there is a real threat of an imminent Russian invasion, said Raffi Boyadjian, lead investment analyst at XM. The U.S. has threatened heavy sanctions if Russia invades Ukraine. NATO is sending more troops on standby and sending ships and jets to Eastern Europe. The NATO action comes despite divisions between the US and Germany over how to proceed, with Europe s largest economy refusing to use the Nord Stream 2 pipeline as a bargaining chip. The pipeline is complete but hasn't yet shipped gas.