Biden aide blasts Moscow’s ‘Potemkin’ stock market reopening

A Biden administration official key to crafting sanctions on Russia blasted the Kremlin on Thursday as it partially reopened the Moscow stock exchange following a month’s hiatus.

Daleep Singh, deputy national security adviser for international economics, called the move “a charade” and “a Potemkin market opening.”

“After keeping its markets closed for nearly a month, Russia announced it will only allow 15% of listed shares to trade, foreigners are prohibited from selling their shares, and short selling in general has been banned,” Singh said in a statement released by the White House. “Meanwhile, Russia has made clear they are going to pour government resources into artificially propping up the shares of companies that are trading. This is not a real market and not a sustainable model — which only underscores Russia’s isolation from the global financial system.”

The Moscow exchange was shut after Russian leader Vladimir Putin proceeded with a large-scale invasion of Ukraine that led to the U.S. and its allies imposing severe sanctions on Russia.

Media reports indicated some stock gains but also volatility as the exchange opened.