Russian stocks fell the most in more than two months as oil and metals slumped on concern that a fraud probe against Goldman Sachs Group may widen, curbing appetite for riskier assets and commodities.
VTB Group, the country's second-biggest lender, lost the most since November, while state pipeline operator Transneft slipped 3.8 percent. The 30-stock MICEX Index closed 2.4 percent lower at 1,459.17, its steepest drop since Feb. 8.
The decline pared the MICEX's gain this month to 0.6 percent.
Crude oil slid as much as 3.3 percent to $80.53 a barrel after British Prime Minister Gordon Brown on Sunday called for the country's financial regulator to investigate Goldman, following the U.S. Securities and Exchange Commission's decision to open a suit against the company related to collateralized debt obligations.
The SEC action prompted concern that the fallout from the global financial crisis was not over. Air traffic disruptions caused by Iceland's volcanic eruption also cut demand for jet fuel.
"It's the Goldman effect and commodities are also down," said Yelena Suslova, portfolio manager at Wermuth Asset Management, which manages about $400 million in Russia and Eastern Europe. "This correction started last week and may have further to travel. Russia has attracted a lot of money this year, but new triggers are fast fading."
The MSCI Emerging Markets Index slid 2.3 percent as of the close of markets in Russia. Copper fell to a three-week low, while other industrial metals also declined.
"Whenever you feel risk is increasing, Russia will be hammered," said Peter Westin, chief strategist at Aton Capital. "If Goldman is sued, if Greece defaults, you can be sure Russia will be affected, and more so than most places."