UK stocks plunge following harsher sanctions on Russia

The US and Europe stepped up sanctions on Russia during the week-end, as Putin raised the threat of a nuclear attack. The FTSE 100 was down 1.6% in this context, and was also dragged down by BP Plc, after the oil major decided to abandon its stake in Russian oil giant Rosneft.

Western nations decided to block large Russian banks from the SWIFT global payments system. Vladimir Putin put Russia's nuclear deterrent on high alert as a response.

Shares in BP PLC dropped by almost 7% today after it unveiled plans to sell its 19.75% stake in Russian oil giant Rosneft over the weekend after Russia's invasion of Ukraine. BP said the move would not impact its short our long-term outlook.

After Germany announced a big increase in military spending, defence stocks rose sharply, including BAE Systems.

 

Things to read today:

Does Putin’s Military Order Raise the Risks of a Nuclear Exchange? (Bloomberg)

Six Factors to Drive Investors during Ukraine Crisis (Financial Times)

Russia’s Ruble, Financial Markets Are Hammered by Sanctions (WSJ)