Russia's Micex Index Slumps to 23-Month Low; VTB Group Tumbles

By William Mauldin

Aug. 26 (Bloomberg) -- Russia's Micex Index fell to the lowest in almost two years, led by OAO Sberbank and VTB Group, the country's biggest banks.

The ruble-denominated Micex sank 3 percent to 1,281.05 at 11:12 a.m. in Moscow, the lowest since Sept. 25, 2006. The dollar-denominated RTS Index declined 3.4 percent to 1,591.16.

Sberbank, Russia's biggest bank, fell 2.36 rubles, or 3.9 percent, to 57.50 rubles. VTB, which had the world's biggest initial public offering last year, tumbled 0.48 kopeks, or 7 percent, to 6.37 kopeks, a record low. A kopek is one hundredth of a Russian ruble.

OAO Gazprom, Russia's biggest publicly traded company, sank 6.07 rubles, or 2.6 percent, to 226.74 rubles.

To contact the reporter on this story: William Mauldin in Moscow at wmauldin1@bloomberg.net.