Turkey's political scandal escalated to a new level, undermining the government's chances of getting its much-needed bailout package from the IMF.
Declines in the U.S. markets on the heels of a poor corporate earnings forecast fueled further sell-offs in emerging markets the world over.
Brent futures shed 2.5 percent to $25.89, while Urals hovered close to $22 per barrel, triggering sales of oil stocks.
At home, clouds gathered around Vladimir Gusinsky's Media-MOST, which the tax police threatened to close on legal grounds, sparking another bout of speculations about the freedom of press in Russia.
On the week, the RTS index dropped 16.1 percent to 136.71 after a string of dour trading sessions after the Constitution Day celebrations.
LUKoil led the decline with a loss of 25 percent to $8.05, so its preferred shares, which shed 15 percent on the week to $8.50, are now traded at a premium.
Bellwether UES dropped 21 percent to 7.55 cents a share, backpedaling to a level last seen in May 1996 when President Boris Yeltsin was in the middle rounds of a public brawl with Communist Gennady Zyuganov.
Aeroflot was the only top-tier stock to hold firm, losing a meager 1.8 percent to 22 cents a share.
Having lost about a quarter of its value since the year's start, the market is entering a dead season. "This is going to be the last week of activity in the market," said Jesse Loeb, head of trading at NIKoil brokerage. "We already see some bargain-hunting, but nobody is going to dive into the market."
Assuming the dust settles in the United States, traders forecast a bright future for those who carry faith in Russia throughout the next year. "We expect a rally to unfold," said Alexei Bachurin, head of sales with IFK Metropol.
"The Russian market could outperform when the situation in the U.S. shapes up," says Loeb. "We are going to see a dynamic market next year."
Russian debts, which were far more stable than equity in the past months, ended the week mixed.
Benchmark Eurobond 2028 was up 0.25 percentage points to yield 15.60 percent, while the paper maturing in 2030 was down 0.1 percentage points to yield 18.15 percent.
… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.
We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.
Remind me later.