Share prices on Russian stock market may continue falling until parliamentary elections

Share prices are falling on the Russian stock market today. They began falling yesterday after a renewed attack on the business world by Russian law enforcement bodies, a Rosbalt correspondent was informed by investment company OLMA. According to the Russian Trading System (RTS), its share price index, the best indicator of the state of the Russian market, fell by 3.3% yesterday to 599.67 points. UES of Russia share prices fell by 5.15% to USD 0.302 while YUKOS share prices fell by 6.04% to USD 14.15. On Monday the index had reached its highest ever level of 650 points.

OLMA analysts claim that shares are being actively sold due to renewed investigations into YUKOS and the announcement by the Prosecutor General's office that it intends to investigate several managers of AvtoVAZ. 'Investors now have lower expectations and many see the investigations and enquiries as a way of putting pressure on YUKOS in order to postpone or even prevent a deal with a foreign company,' the experts said.

'It is likely that market growth will slow down before the parliamentary elections are over as a result of increased political risks,' they said.

The elections are scheduled for December 7.

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