Russian ADRs plunge on Georgia conflict
NEW YORK, Aug 8 (Reuters) - Russian shares traded in the United States dropped on Friday, after Russia sent forces into Georgia to repel a Georgian assault on the breakaway South Ossetia region.
Georgia's pro-Western president said the two countries were at war.
Russia's benchmark RTS equity index fell to a 14-month low and the rouble lost 1 percent against a euro/dollar basket.
ADRs of Russian fixed-line telecoms firm Rostelecom (ROS.N) (RTKM.MM) fell 3.3 percent to $68.68, while those of the country's largest mobile phone operator Mobile Telesys (MBT.N) fell 6.5 percent to $66.51.
ADRs of Wimm-Bill-Dann (WBD.N), Russia's top dairy producer, fell 4 percent to $77.94.
"There are so many places to put your money, why would you put it in Russia right now," said Jim O'Leary, fund manager at Navellier & Associates in New York, who specializes in ADRs.
He added that he has been reducing exposure to Russia recently, due to declines in the price of oil and other commodities, and concerns about the government's tax policy.
Mechel OAO (MTL.N) (MTLR.RTS), Russia's largest producer of coal for the steel industry, fell 1.5 percent to $23.70.
Mechel postponed a preferred share offering indefinitely on Friday as its stock struggles to recover from a massive sell-off following government criticism. Russian Prime Minister Vladimir Putin attacked Mechel's pricing policy on July 24 and, four days later, accused the miner of tax evasion.
The Bank of New York Mellon's index of leading American Depositary Receipts (ADRs) .BKADR was down 0.3 percent. (Reporting by Kristina Cooke; Editing by Theodore d'Afflisio)
