Putin’s incursion into Ukraine’s Crimea region is sparking investor concern that Russia’s economic growth will falter.

(Bloomberg) — The last time Russian stocks fell as much as they have this week was when President Vladimir Putin cracked down on protesters following his election in May 2012.

Putin’s incursion into Ukraine’s Crimea region, like the imprisonment of demonstrators following his return to the presidency two years ago, is sparking investor concern that Russia’s economic growth will falter as the U.S. and Europe threaten the country with sanctions. The Bloomberg Russia-US Equity Index of the most-traded Russian companies in the U.S. has fallen 5.1 percent this week, the most since the measure dropped 11 percent in the five days to May 18, 2012.

President Barack Obama said the U.S. and its allies will keep raising pressure on Russia to back down in Ukraine and held open the possibility of further sanctions if Putin’s government doesn’t respond. The dollar-denominated RTS Index has tumbled 19 percent this year, the worst-performing equity benchmark among 94 gauges tracked by Bloomberg.

Obama spoke after Crimean lawmakers called yesterday for a March 16 referendum in a bid to return Ukraine’s Black Sea peninsula to Russia. JPMorgan Chase & Co. cut Russian stocks to underweight from overweight.

“Investors hate uncertainty, and there is a lot of uncertainty about Russia,” Bruce McCain, who helps oversee more than $20 billion as chief investment strategist at the private- banking unit of KeyCorp in Cleveland, said by phone yesterday. “Any time there’s a political turmoil, there’s an economic

The Micex Index gained 0.4 percent to 1,343.81 at 9:23 a.m. in New York. The measure has dropped 7 percent this week, also the most since May 2012.

Overseas trading of Russian stocks is soaring as investors react to the twists and turns of the military standoff in Ukraine long after the Moscow bourse has closed for the day.

Events in Ukraine are “clearly a fundamental threat to our overweight rating,” Adrian Mowat, JPMorgan’s chief Asia and emerging-market strategist, wrote in a report dated yesterday.

The weaker ruble, higher inflation, and worsening consumer and business sentiment will cut domestic demand and investment, Mowat wrote.

Volumes in the Market Vectors Russia ETF, which tracks companies from Gazprom OAO to OAO Lukoil, surged to an all-time high of 26 million on March 3, more than six times the one-year average, as stocks plunged after President Putin got lawmakers’ approval to deploy troops in Ukraine’s Crimea region.

While U.S.-based ETFs investing in Russian equities lost 12 percent of their assets this year, the most outflows after Chile among 46 country-specific funds tracked by Bloomberg, these ETFs bought $54.8 million of the country’s stocks yesterday.

The Russian ETF has dropped 4.2 percent this week, while the Russia-US Index lost 0.9 percent yesterday to 83.90.

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