Page 10 - RusRPTApr21

Markets shrug off the new sanctions
The Russian stock market failed to respond to the sanctions announcement, closing trading up 0.66% on the day with the RTS index climbing to 1,452, as it recovered most of the ground from last week’s global emerging market correction.
And the ruble gained 1.2% on the day, strengthening to RUB73.8 against the dollar as traders breathed a sign of relief that a tit-for-tat sanctions war is not about to break out. Economists say that the ruble is currently undervalued by some 5%-9%, depending on various estimates, and that its fair value is closer to RUB68 to the dollar. The ruble fell to touch on RUB80 to the dollar last year due to a toxic mix of falling oil prices, an economic slowdown caused by the coronavirus (COVID-19) pandemic and rising geopolitical tensions as it became clear Biden was going to win the US presidential election.
More recently, the ruble has decoupled from oil prices and got stuck at around RUB74 despite oil’s almost $10 gain in price, held back by fears of new sanctions. Many economists are predicting if the situation does not escalate the ruble will make further gains and could end this year at RUB70-RUB72 to the dollar.
2.2 Google tech tax 2.0
The latest in Russian tech protectionism, the government is considering implementing a new tax on foreign IT firms that use consumer data for advertising.
According to Vedomosti, tech-focused deputy Prime Minister Dmitry Chernyshenko discussed the proposal with industry participants at a meeting
10 RUSSIA Country Report April 2021 www.intellinews.com