(Bloomberg) --

Russian markets brushed off reports that the U.S. and its allies are considering sanctions targeting the country’s banking sector should President Vladimir Putin invade Ukraine. 

The benchmark MOEX Russia Index rose 0.4% to 3,825.09 at 11:35 a.m. following a decline of 2.6% on Monday, while the ruble was little changed at 74.2650 per dollar. 

“The risk of the U.S. imposing punitive measures that could cause serious damage to the Russian economy is nothing new,” said Piotr Matys, a senior currency analyst at InTouch Capital Markets Ltd. in London. “Given that talks are scheduled for today, the market may prefer to wait for official comments from President Biden.”

Biden Weighs Russian Banking Sanctions If Putin Invades Ukraine

Sanctions including against some of Russia’s largest banks and the Russian Direct Investment Fund are among the options that President Joe Biden may spell out when he speaks with Putin on Tuesday, according to people familiar with the matter, who asked not to be identified to discuss private talks. 

State-owned Sberbank PJSC, Russia’s biggest lender, was down 0.2% to 304.29 rubles in Moscow trading after closing down 4.8% on Monday following initial reports of possible sanctions. Number two bank VTB Group, which is also state-owned, was down 0.2% after 1.8% decline Monday.

Why Russia-Ukraine Tensions Are So Hard to Defuse: QuickTake

Kremlin spokesman Dmitry Peskov dismissed reports of planned sanctions as “informational hysterics,” the Tass news service reported late Monday.

“It’s very hard to expect breakthroughs” from the conversation Tuesday, he said, adding that Putin will listen “with great interest” to Biden’s proposals on Ukraine.

“Let’s at least hope that the leaders will be able to get their concerns across, clearly formulate those and respond,” Peskov said.

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