The stock market is an illusion; low currency value and consumer confidence prevents a public offering.

Jennifer Sor 23, reporter, BA in Economics and English from UC Santa Barbara, 8/20/2023, "The resilience of Russia's stock market and its economy is a complete mirage masking deeper pain, Yale researchers say," Markets Insider, https://markets.businessinsider.com/news/stocks/russia-economy-stock-market-putin-ukraine-war-moscow-investment-sanctions-2023-8, christian

That apparently stellar performance of the Russian stock market this year is ultimately an illusion meant to mask deepening pain in the country's economy. The Moscow Exchange, Russia's largest benchmark equity index, has soared 43% since the start of the year, more than doubling the gains seen in the S&P 500, but those gains are deceptive, according to Yale researchers Jeffrey Sonnenfeld and Steven Tian.

The success of Russian stocks this year is partly due to the fact that Russia has frozen inflows and outflows of foreign assets, meaning those who invested in Russian stocks prior to the invasion of Ukraine haven't been able to cash out. It's a move that was intended to prop up Russia's stock market, the researchers said.

Gains are also attributable to Russia's ruble, which recently plummeted to its lowest level against the dollar since the start of the war — something that's also worked to prop up the stock market. That's because Russia mostly produces commodities that are sold using foreign currencies, Tian said. Higher-value currencies are flowing into the nation, which has helped artificially inflate profits and boost Russian stock levels.

"The stock market gains reflect less genuine wealth creation or foreign investment/confidence in Russian markets (which is non-existent) and more merely exchange rate effects," Tian said.

Beneath those inflated numbers, Russia is actually suffering from a huge loss of confidence in its economy – and it's the main reason why investment in the nation will probably continue to wither, even after war in Ukraine ends. 

"The Russian stock market performance is very misleading, It is a Roach Motel of assets," Sonnenfeld told Insider. "No one will invest in Russia for a long time. Ukraine, Poland, and the Baltic nations will be far better investment opportunities in the region."