The Moscow Exchange is open once again to non-residents. These non-resident investors must be from countries Russia views as “not hostile.” Countries that Russia will not include in the reopening consist of members of the European Union, the United States, Australia, Canada, and Japan.
The sanctions placed on Russia by Western countries have significantly affected the country’s economy. So much so that Russia reportedly defaulted on its debt in June for the first time in nearly 25 years.
Shortly after Russia invaded Ukraine in February, Russia closed its bond and stock markets. In March, the stock exchange began to come back slowly.
As many countries steer clear of Russia, China and Turkey may take advantage of this opportunity. Both countries have not publicly condemned Russia or placed any sanctions on the government for its invasion of Ukraine.
The Moscow Exchange stated in its press release: “Starting August 15, 2022, the Moscow Exchange will provide non-resident clients from countries that are not hostile, as well as non-residents whose ultimate beneficiaries are Russian legal entities or individuals, to make transactions on the bond market, “ said the Moscow Exchange in their press release.
The Moscow Exchange also granted a taste of transparency, adding that on August 8, professional brokers and banks began to enter non-resident investors on the exchange.