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| Trading in Russian shares halted | Trading in Russian shares halted |
| (30 minutes later) | |
| Trading on Russia's main stock exchanges has been suspended following steep falls in shares prices this week. | Trading on Russia's main stock exchanges has been suspended following steep falls in shares prices this week. |
| The shock developments on Wall Street this week spurred a sell-off in Russian shares, which sank to three-year lows on Tuesday. | The shock developments on Wall Street this week spurred a sell-off in Russian shares, which sank to three-year lows on Tuesday. |
| Following a plunge of 6%, the dollar-denominated RTS index halted trading on Wednesday until further notice. It is down 60% since its May peak. | Following a plunge of 6%, the dollar-denominated RTS index halted trading on Wednesday until further notice. It is down 60% since its May peak. |
| Trading on the rouble-denominated Micex was also suspended. | Trading on the rouble-denominated Micex was also suspended. |
| This comes after shares on the Micex slumped by almost 18% on Tuesday to 888.17 points - its largest one-day decline since Russia's financial system collapsed in 1998. | This comes after shares on the Micex slumped by almost 18% on Tuesday to 888.17 points - its largest one-day decline since Russia's financial system collapsed in 1998. |
| Ebbing confidence | Ebbing confidence |
| Confidence in Russian shares began to ebb after the country's invasion of Georgia last month with billions of dollars of foreign capital pulled out of the country in August alone. | Confidence in Russian shares began to ebb after the country's invasion of Georgia last month with billions of dollars of foreign capital pulled out of the country in August alone. |
| Adding to this there have been mounting worries over the global credit markets, particularly after the demise of US banking giant Lehman Brothers and problems at insurer AIG. | Adding to this there have been mounting worries over the global credit markets, particularly after the demise of US banking giant Lehman Brothers and problems at insurer AIG. |
| While shares in emerging markets have been hit by the problems on Wall Street, including the bankruptcy of one of the oldest and biggest US investment banks, Russian shares have borne the brunt of the sell-off. | While shares in emerging markets have been hit by the problems on Wall Street, including the bankruptcy of one of the oldest and biggest US investment banks, Russian shares have borne the brunt of the sell-off. |
| The Russian central bank has been injecting extra funds into its money markets to ease liquidity problems at domestic banks, offering a record 361 billion roubles at its daily auction on Tuesday. | |
| But despite this, lending between Russian banks continued to fall as the interest rate which they charge each other to borrow money overnight jumped to 11%. | But despite this, lending between Russian banks continued to fall as the interest rate which they charge each other to borrow money overnight jumped to 11%. |
| Kremlin intervention | Kremlin intervention |
| This prompted the Kremlin to take additional steps on Wednesday to reassure investors about the stability of Russia's financial system. | This prompted the Kremlin to take additional steps on Wednesday to reassure investors about the stability of Russia's financial system. |
| The Finance Ministry said it will loan 1.13 trillion roubles ($39bn; £21bn) to three of the country's biggest banks to boost liquidity. | The Finance Ministry said it will loan 1.13 trillion roubles ($39bn; £21bn) to three of the country's biggest banks to boost liquidity. |
| The money will be offered to Sberbank, VTB Group and Gazprombank for a period of three months to make it easier for them to lend to smaller banks at affordable rates. | The money will be offered to Sberbank, VTB Group and Gazprombank for a period of three months to make it easier for them to lend to smaller banks at affordable rates. |
| "These are market-making banks capable of insuring the liquidity of the banking system," the Finance Ministry said in a statement. | "These are market-making banks capable of insuring the liquidity of the banking system," the Finance Ministry said in a statement. |