Russia's equity markets may encounter a 'Lehman minute' if the Ukraine dispute weakens further, baseding on Alexander Kantarovich, head of study for JPMorgan Chase & Co. in Moscow.

'With the significant deterioration in the Ukrainian situation, markets may address this as a Lehman-style shock,' Kantarovich filled in an e-mailed report Friday. 'Taking another look at the post-Lehman lows would indicate downside of 50 percent from an index viewpoint.'

Russia's ruble-denominated Micex Index has dropped 6.6% this year. The stock scale uploaded the worst month-to-month come by July since 2012 as the UNITED STATE as well as the European Union escalated sanctions targeting Russia's $2 trillion economy after the downing of a passenger jet on July 17 over Ukrainian territory managed by pro-Russian insurgents.

The Micex lost 67% in 2008, the most significant reduction amongst benchmarks in the 30 largest stock market, as Lehman Brothers Holdings Inc.'s collapse activated a worldwide economic downturn and overseas banks cut credit. It recoiled by 120 percent in 2009, data collected by Bloomberg show.

Kantarovich sees substantial distinctions between the circumstance now and the 2008-2009 dilemma since oil costs, Russia's main export, are delaying and an economic tightening 'could not be that deep.'

The global economic crisis crimped need for products, sending out Urals as low as $32.34 a barrel on Dec. 24, 2008. The reduction was a 77% decline from a higher of $142.50 in July that year. Crude is trading at $94.96 a barrel today in New york city.

Financial Stocks

The bank recommends decreasing Russian financial investments because 'markets may no more think a fast as well as easy resolution of the conflict and also 'even worse just before better' appears a likely sequence.'

Financials are 'particularly badly exposed' by penalties as well as the wider economic situation, he composed. The most effective defensive plays are exporters with no 'unwanted political affiliations' as they will certainly take advantage of a weak ruble, he said.

Kantarovich, who joined JPMorgan from MDM Bank in 2007, declined to comment additional by telephone.