Where next for investors in Russia after geopolitical tensions reach breaking point?

Washington-Moscow relations fraught

Tom Eckett
clock • 4 min read

The sell-off in Russian markets following the US's shock decision to impose harsher sanctions has created a divergence between emerging market debt and equity managers, with bond managers becoming extremely bearish while equity managers have identified buying opportunities.

On 6 April, the US hardened sanctions imposed on Russia by targeting seven of the country's richest men, as well as 17 government officials. The move followed what Western powers view as aggressive acts from Russia, including the Salisbury incident in the UK where a former Russian spy was poisoned and its interference in the 2016 US Presidential Election. Tensions were exacerbated last week following a suspected chemical attack in Syria by Russian ally President Bashar al-Assad, which left around 75 dead. In response, Trump cancelled his trip to a number of South American countries...

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