Russian rouble steadies near 74 vs dollar, Norilsk shares rally

MOSCOW: The Russian rouble steadied near the 74 mark against the dollar on Friday as investors awaited clarity on potential new European sanctions on Moscow, while shares in Norilsk Nickel outperformed the market.

At 1458 GMT, the rouble was 0.1% weaker against the dollar at 73.99 and eased 0.3% versus the euro to trade at 89.67.

The rouble has suffered due to intensified geopolitical tensions between Moscow and the West in the past few months, shrugging off a recovery in oil prices and other positive developments.

When prices for oil, Russia's key export, hovered around current levels of near $64 per barrel in early 2020, the rouble was at around 62 to the dollar.

"Volatility on the oil market and in risky assets may keep the sideways trend in the rouble in place. But we still think that chances for its renewed firming are slightly higher," said Dmitry Polevoy, head of investment at Locko Invest.

The European Union is set to impose travel bans and asset freezes on allies of Russian President Vladimir Putin in March over the jailing of Kremlin critic Alexei Navalny, diplomats said.

The Kremlin said it hoped the United States and European Union would fall back on common sense and resist calls to impose new sanctions on Moscow over its treatment of Navalny.

Russian stock indexes advanced. The dollar-denominated RTS index rose 1.4% to 1,466.6 points. The rouble-based MOEX Russian index was 1.2% higher at 3,441.3 points.

Shares in Norilsk Nickel climbed 4.2% after the mining giant said it would not appeal a $2 billion fine for the damage caused by an oil spill last year, which became the country's worst environmental disaster in the Arctic.

Foreign exchange and equities will be open for trading on the Moscow Exchange on Saturday, a rare weekend working day in Russia.