Russia's stock market surged on Thursday following President Donald Trump's announcement that he spoke with Russian President Vladimir Putin on the phone about ceasefire negotiations in Ukraine.
Why It Matters
Following Putin's invasion of Ukraine in February 2022, Russia became the world's most-sanctioned country as punishment, according to the Carnegie Endowment for International Peace.
Russia was also kicked out of the SWIFT global banking system, while Western nations froze Russia's access to some of its foreign reserves, and Europe froze purchases of Russian oil and gas. An increase in military spending has added further strain on the Russian economy.
What To Know
On Wednesday, Trump posted on Truth Social that he and Putin spoke in a "lengthy" phone call earlier in the day. The Kremlin reported that the call lasted approximately 90 minutes and that the two leaders had agreed to meet.
This was the first call between Trump and Putin since the president returned to the White House last month.
It followed Tuesday's prisoner exchange in which Russia released American schoolteacher Marc Fogel after more than three years in detention. As part of the swap, convicted Russian criminal Alexander Vinnik was freed, two U.S. officials confirmed Wednesday, providing details of the exchange.
Trump has repeatedly said he will quickly end the war in Ukraine but has not specified how he would do so.
Russian Stock Market Surge
The Moscow Exchange (MOEX) increased by more than 6 percent to 3,210 points following the news of the Putin-Trump call, and the RTS Index jumped more than 6 percent to 1,080, according to The Moscow Times.
Meanwhile, the ruble was up 3.7 percent at 90.50 against the U.S. dollar, Reuters reported, citing data from the over-the-counter market.
The Moscow Times added that shares for major Russian companies such as Novatek, Gazprom and Rostelecom jumped by more than 8 percent. Overall, Russia's stock market is up 11.1 percent since the beginning of the year, according to Reuters.
What People Are Saying
Reuters reported on Thursday that Sinara brokerage analysts said: "The moment investors have been waiting for has arrived. The next step towards easing geopolitical tensions."
Sofya Donets from T-Bank said of the Russian stock surge, per Reuters: "Once again, we approach this trigger with caution. Even in the best-case scenario, it will be a difficult road with its ups and corrections, requiring attention from investors."
What Happens Next
Trump on Wednesday said he will be meeting with Putin after he spoke with the Russian leader and had a separate call with Ukrainian President Volodymyr Zelensky.
About the writer
Jon Jackson is a News Editor at Newsweek based in New York. His focus is on reporting on the Ukraine ... Read more