TLDRs:
- Russia’s stock market dropped sharply after Trump called Putin “crazy” and threatened new sanctions.
- Key Russian companies, including Sovcomflot and Gazprom, saw major share price declines.
- Dozens of Russian firms are suspending dividend payments amid economic pressure and sanctions.
- Kremlin dismisses Trump’s remarks as emotional, while Ukraine suffers from intensified Russian air attacks.
Russia’s financial markets tumbled sharply on Monday after U.S. President Donald Trump publicly labeled Russian President Vladimir Putin as “absolutely crazy” amid escalating military strikes on Ukraine.
Russia Market Plunge
The Moscow Exchange (MOEX) index slid over 2%, closing near 2,711 points, down from its opening level of 2,735. The sudden selloff was led by key players such as Sovcomflot, the country’s largest shipping company, whose shares plunged more than 5%. Other heavyweights including energy giant Gazprom, metals producer En+ Group, and tech firm VK Group suffered losses exceeding 4%, reflecting heightened investor anxiety.
Market analysts pointed directly to Trump’s outspoken comments as the catalyst for the sharp decline. Speaking to reporters, Trump expressed outrage over Russia’s recent missile and drone attacks on Ukraine and indicated that he was seriously considering imposing fresh sanctions on Moscow.
Trump claims Putin 'has gone absolutely CRAZY!'
Zelensky targeted 'for no reason whatsoever'? pic.twitter.com/8ZTiaxmXXv
— RT (@RT_com) May 26, 2025
Firms Suspend Dividends
Beyond the market reaction, economic indicators show growing strain on Russian corporations. At least two dozen publicly traded companies have advised against paying dividends from their 2024 results, citing declining revenues, high borrowing costs, and ongoing sanctions pressure. Industry leaders in energy and mining sectors such as Gazprom, Norilsk Nickel, and Severstal announced they would withhold dividends, marking a cautious approach to conserving liquidity in uncertain times.
According to Russian state statistics, total corporate earnings in 2024 decreased by nearly 7% in nominal terms and around 15% when adjusted for inflation. Losses among companies surged by almost 38%, signaling deteriorating financial health across sectors ranging from retail to agriculture and logistics. Analysts attribute this downturn to reduced export revenues, the strength of the ruble, which hurts exporters, and sky-high interest rates exceeding 21%.
Russia Responds
In response to Trump’s remarks, Kremlin spokesman Dmitry Peskov dismissed the comments as emotional reactions tied to the ongoing conflict and peace negotiations.
“This is a very serious moment, one that naturally comes with emotional strain for everyone and strong emotional reactions,” Peskov said, implying that the pressure of mediation efforts might be affecting Trump personally.
Meanwhile, Russian forces intensified their campaign in Ukraine over the weekend, launching the largest air assault of the war with over 360 drones and missiles. Ukrainian officials reported at least 12 casualties, including children, underscoring the escalating human toll.
Geopolitical Tensions Fuel Market Uncertainty
Trump’s comments come at a delicate moment as Ukraine and Russia remain entrenched in conflict, with peace talks stalled over fundamental disagreements. The prospect of new sanctions threatens to further isolate Russia economically and exacerbate internal pressures on its companies and markets.
Investor sentiment remains fragile as uncertainty looms over how the West’s response will evolve and how Moscow will navigate the mounting economic and geopolitical challenges. The suspension of dividends by major firms signals a defensive posture aimed at weathering these headwinds.
As the war continues into its fourth year, the interplay of military escalation and international political moves keeps Russia’s markets on edge, with potential ripple effects far beyond its borders.
