Russian Stocks Slide Most in World as Downed Jet Heightens Risks

The dollar-denominated RTS Index tumbled as much as 4 percent after Turkey said it repeatedly warned the pilots that they were violating the nation’s airspace. The declines were led by Gazprom PJSC, which relies on Turkey for 17 percent of its natural-gas exports outside of the Commonwealth of Independent States, according to BCS Financial Group. Government bonds declined and credit risk rose.

“A break in the relationship between the countries will have a direct economic impact,” said Joseph Dayan, the head of markets at BCS in London. “The two sides do not have an interest to completely break down relationships. The probability of military confrontation or a freeze in trade relations is highly unlikely.”