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

Washington-Moscow relations fraught

Tom Eckett
clock
The US recently imposed harsher economic sanctions on Russia
Image:

The US recently imposed harsher economic sanctions on Russia

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...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Emerging markets

European-focused investment grade and high yield credit have highest inflows since April 2020.

Fixed income dominates ETF flows in July

Accounted for $32.5bn

clock 08 August 2022 • 2 min read
“Rates are going above 4% - today's number should put to bed any doubters.” - Seema Shah, chief strategist at Principal Global Investors

Further 75 basis points hike 'almost a done deal' as US labour figures beat expectations

More than double predictions

James Baxter-Derrington
clock 05 August 2022 • 2 min read
The Big Picture: What were the biggest stories from July?

The Big Picture: What were the biggest stories from July?

Recapping the top stories

James Baxter-Derrington
clock 04 August 2022 • 1 min read
Trustpilot