LONDON (Reuters) – Shares in companies exposed to Russia and Ukraine fell heavily on Monday while European equity market volatility surged to a 16-month high after the Russian military said it had foiled a border breach from Ukraine. While Kiev denied the report as fake news, markets reacted to the headlines, with shares in Raifeissen Bank falling more than 6% while Italy’s Unicredit and Hungary’s OTP extended losses to stand around 3% lower. An index measuring European equity market volatility spiked to the highest since October 2020 London-listed mining firms Polymetal and Petropavlovsk, wit…