Moscow Exchange opens bond trading to foreigners from ‘not hostile’ countries.
Russia has taken another step to ease the restrictions it has adopted to protect its economy and financial markets from sanctions and other consequences of its invasion of Ukraine. From Monday, investors from “non-hostile countries” will be allowed to trade on the Russian bond market, the Moscow exchange said.
After the invasion began in late February, the value of Russian financial assets plummeted, followed by suspension of trading on the Moscow Exchange. About a month later, limited trading of domestic bonds was resumed for Russian investors, gradually allowing more trading. But now, amid a tangle of rules, trading in bond markets, including government bonds and corporate bonds, is open to some foreigners.
Access to the Moscow Exchange for bond trading will be limited to countries Russia considers friendly.investors from “Unfriendly countries,” a group that includes the United States, the European Union, Japan, Australia and Canada, which have severed financial ties with Russia and imposed sanctions since its invasion, remain inaccessible to trading in Moscow. Trading in Russian assets for these investors is also heavily restricted by their home country.
Late last month, the U.S. Treasury Department authorized financial transactions This will allow investors to reduce their holdings of Russian assets and auction on derivative types that pay out in case of default. Some Wall Street banks are facilitating this Russian bond deal. Reuters reported on Mondayhas avoided the market because of the risks from sanctions.
