Russia rewards friends in latest market reboot

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Russia rewards friends in latest market reboot via IrishTimesBiz

Moscow: Nearly six months after Russia was evicted from much of global finance over the invasion of Ukraine, it’s going it alone by devising a two-tier system severed from adversaries. Photograph: Natalia Kolesnikova/AFPNearly six months after Russia was evicted from much of global finance over the invasion of Ukraine, it’s going it alone by devising a two-tier system severed from adversaries.

From Monday, the Moscow exchange will allow trading in debt securities for investors from countries that haven’t joined the sanctions imposed by the US and its allies. The decision ends a hiatus in place since Russia sealed off its markets to restrict the flow of money out of the country when the war began in late February.

The group – which includes nations from EU members to Canada and Japan – accounted for about 90 per cent of total portfolio investments into Russia as of last year. “Given the circumstances, it will be necessary to develop trade and financial relations with those countries that are ready to do this with Russia, said Oleg Vyugin, a former top Russian central bank and finance ministry official.

 

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