MainNews -

Russia has become unfit for investments - Bloomberg

Financial losses "can last for years".

Russia has become unfit for investments - Bloomberg

Russia's war against Ukraine has put an end to foreign investment: Russia now has every sign of an uninvested market. This was reported by the business news agency Bloomberg.

During the week, Russian-based equity funds fell 23% p, and investors who had previously invested in Russian securities found themselves in a financial trap. Currently, the opportunities to sell assets are limited, and exit from the market is accompanied by large losses. The main reason for investors' problems is international sanctions against Moscow due to its invasion into Ukraine, and market restrictions implemented by Russian Central Bank in as the response to these sanctions.

"Over the last few weeks, there has been a sharp reversal from the previous year, when Russia's economy benefited from a sharp increase of oil prices, stocks reached record levels and the ruble became a popular target for trade. Now the storm of sanctions Russia faced as the response to President Vladimir Putin's invasion into Ukraine makes money managers fear that financial losses will last for years, "the newspaper writes.

According to the Moscow Stock Market, at the end of 2021, foreign investors owned Russian shares worth about $ 86 billion. Bloomberg Intelligence estimates that Russia's nearly $ 13 billion worth of US and European funds are now in the hands of sanctioned companies.

"There is no way to invest safely in Russia," said Mark Mobius, an emerging market investment specialist who left his last investment in Russian capital six months ago. "This is probably the most dramatic cessation of investment in any major country in recent history."

Let us remind you that yesterday the United States blocked the assets of the Russian Direct Investment Fund and of its Head Kyryl Dmytriev - they were included in the SDN List (a list of complete blockage of assets. Today, the UK announced sanctions against the fund and Dmytriev.

Read news on social networks Facebook, Twitter and Telegram