Russian assets flat awaiting Moscow-Kiev gas talks outcome

MOSCOW, June 10 Tue Jun 10, 2014 2:43am EDT

MOSCOW, June 10 (Reuters) - Russian stocks and the rouble opened flat on Tuesday, underperforming emerging market peers, after Russia and Ukraine failed to agree a gas price at overnight talks.

At 0605 GMT, the dollar-denominated RTS index was flat at 1,3603 points, while the rouble-traded MICEX index was down 0.1 percent to 1,482.3 points.

The broad emerging market index traded 0.5 percent higher.

The rouble was trading at 34.31 against the dollar and at 46.67 versus the euro, little changed from Monday. That left the currency flat at 39.87 against the dollar-euro basket the central bank uses to guide the rouble's nominal exchange rate.

Trilateral gas talks between Russia, Ukraine and the European Commission are to resume on Tuesday or early on Wednesday after eight hours of negotiations failed to get a deal the previous day.

Russia has threatened to cut off supplies of natural gas to Ukraine as early as Tuesday, with possible knock-on effects for EU supplies, because Ukraine has failed to pay its bill.

"As long as the gas negotiations last, the market will be hoping that all will end well, and therefore buying of the Russian currency may continue, But with the first appearance of real news, another wave of selloffs cannot be ruled out," Golden-Hills Capital analyst Natalia Samoilova said in a note.

Shares of Gazprom, the main player in the negotiations with Ukraine, were yet to trade.

Russian Internet companies are awaiting the outcome of a meeting with President Vladimir Putin to see if he will soften his stance on regulating online companies.

Shares in Russian search engine Yandex closed 0.8 percent higher in New York on Monday, after falling for several weeks after Putin said the Internet was a CIA project and that there had been too much outside influence on Yandex.

Trading volumes in the currency and equity markets continued to be low for the second session in a row, with markets to be closed Thursday-Friday for a long public holiday in Russia.

For rouble poll data see

For Russian equities guide see

For Russian treasury bonds see

Russia in graphics: link.reuters.com/dun63s (Reporting by Lidia Kelly; Editing by Catherine Evans)

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