Home MOREBUSINESS & ECONOMY Reeling under sanctions, Russia seeks foreign investment from “non-hostile” counties

Reeling under sanctions, Russia seeks foreign investment from “non-hostile” counties

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Several major Wall Street banks have begun offering to facilitate trades in Russian debt in recent days, according to bank documents seen by Reuters, giving investors another chance to dispose of assets widely seen in the West as toxic.

Most U.S. and European banks had pulled back from the market in June after the Treasury Department banned U.S. investors from purchasing any Russian security as part of economic sanctions to punish Moscow for invading Ukraine, according to an investor who holds Russian securities and two banking sources.

Meanwhile the Moscow exchange will be partially reopened to foreign investors. It says only investors from “countries that are not hostile” will be allowed to trade bonds, meaning primarily those who have imposed sanctions on Russia’s economy.

These “hostile” countries include members of the European Union, Canada and Japan, who between them accounted for 90% of investments into Russia last year.

Russia had sealed off its markets in February to restrict money from leaving the country during the war.

In a statement, the Moscow Exchange said it would be reopening its bond market to “non-resident clients from countries that are not hostile, as well as non-residents whose ultimate beneficiaries are Russian legal entities or individuals.”

China and Turkey are likely to be among these nations, as they have not imposed sanctions against Russia.

It added that banks, brokers and investment management companies had started registering their foreign clients with the exchange.

Russia closed its stock and bond markets hours after President Vladimir Putin sent thousands of troops into Ukraine on 24th February.

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