Russia suspends markets as shares slide

MOSCOW, Russia (CNN) -- Russian stock exchanges suspended trading for several hours Tuesday after shares plummeted soon after markets opened.

Both exchanges -- the main RTS index and the MICEX currency exchange -- reopened later in the day, the indices said.

Financial regulators ordered the suspension after the RTS plunged more than 8 percent in the first few minutes of trading. The Federal Financial Markets Service (FFMS) also suspended the MICEX in the first few minutes of trading in anticipation of big losses.

The turmoil in the Russian markets stems from concern over global growth following the recent instability in financial markets around the world.

The RTS is Russia's main index and is dominated by commodities, including oil. Russia's economy is essentially founded on the price of oil, which has been hit hard in recent months.

Oil prices have plunged around 35 percent since a high of $147 per barrel in July.

State-owned oil major Rosneft fell 8.2 percent and oil firm Lukoil lost 7.2 percent as oil prices dipped overnight below $100 a barrel. Mining company Norilsk Nickel plunged 8.6 percent and state-controlled VTB bank declined by 5.5 percent.

Investors also increasingly view Russia as a risky place to invest, in part because of the standoff between Russia and the West and the military conflict between Russia and Georgia in August.

And a sharp fall on domestic exchanges earlier this month -- resulting in a two-day shut down of trading -- led to a major loss of confidence among lenders.

Since then, the Russian government has poured in billions of dollars into the banking system in an effort to ease liquidity concerns.

"Globally, investors are running from risk," Moscow-based UralSib bank said in a note to investors, according to The Associated Press.

"With the price of crude crashing back ... plus worries about the outlook for stability within the country's financial system, Russia is firmly in that category."

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