(Reuters) – Russian stockindices rose Wednesday in spite of Western threats to impose sanctions on Russia in response to “a special military operation in Ukraine” by Moscow. The rouble, however, remained below 90 per euro.

Equities lost ground on news that Russia and the United States had prepared sanctions to ban Russian investment and target Russian bank officials.

A EU official stated that the EU will have to take measures to stop Russian oil imports and gas imports at one point in order to put pressure on Moscow.

Dollar-denominated RTS Index fell to 979.34 Points before losing 2.6% and rising to 1,031.3 by 1219 GMT.

MOEX Russian, a rouble-based index, rose 0.5% to 2,675.5. However it is still far away from its record 4,292.68 in October.

Shares could feel some downward pressure from news about sanctions from Western countries, but this may be temporary as Russia’s government promised support by buying shares from them with money from its rainy-day National Wealth Fund.

Finam brokerage reported in a note, that Russia’s stock market showed “miraculous resilience”, in spite of new sanctions. It also saw a sharp drop in activity within the Russian manufacturing and services sector in the absence foreign investors.

Lukoil’s shares increased 2.8% over the market. Gazprom (MCXX:) Neft grew 1.9%.

There were two large state-owned banks in red: Sberbank (and VTB) lost 1.8% and 2.4%, respectively.

As Russia paid its dollar bondholders with roubles, it reaffirmed its currency and stated that it will continue doing so until sanctions are lifted.

Nearly 2% of the rouble rose to trade at 81.70 against the dollar on Tuesday. It traded at 89.10 to the euro after strengthening 2.7%, close to levels that were seen prior Russia’s deployment of tens or thousands of troops in Ukraine on February 24, 2014.

The focus will shift to weekly inflation data later in the afternoon. The central bank may consider reducing the rate at its April board meeting if inflation signs slow down. This could prove to be a positive development for OFZ Treasury Bonds.

Promsvyazbank stated in a note that “at the same time geopolitical risk and rouble volatility limit this scenario.”

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