Russian Stocks Extend Gains on New Cabinet Announcement

Russian stocks extended gains in Monday afternoon trade, after President Vladimir Putin announced a new Cabinet, with the majority of the government composed of new officials.

Investors seemed to be optimistic about the make-up of the new Russian government, as stocks, which were trading higher on Monday morning trade, moved higher.

At 2:58 p.m. Moscow time, the ruble-denominated MICEX index was up 1.31 percent for the day to 1,288.14 points and the dollar-denominated RTS up 1.41 percent to 1,307.60 points.

President Putin on Monday signed a decree on the appointment and make-up of the country’s new government, intended to steer the country through political and economic turbulence in the next six years.

“The situation affecting the global economy is uncertain, and there are a lot of factors of uncertainty, and in these conditions you’ll have to implement Russia’s development program” Putin told the new Cabinet.

Acting Finance Minister Anton Siluanov has retained his post and is seen as continuing the policies of his predecessor, Alexei Kudrin, who is credited with creating the policy framework which has seen Russia massively pay down debt, and saw the country weather the 2008-2009 financial crisis, and its aftermath.

Andrei Belousov who worked as deputy economic development and trade minister from 2006-2008 and was director of the Russian government’s economic and finance department has been appointed head of the Economic Development Ministry, while Acting Industry and Trade Miister Denis Manturov has been placed at the head of the Industry and Trade Ministry.

 

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