Global investors are taking a significant risk by re-entering the markets for Russian debt, which has been largely absent since 2020 due to global sanctions and economic turmoil. Traders at a London brokerage have been actively searching for dollar-denominated bonds issued by Gazprom, the country’s largest energy company. Despite initial resistance from bondholders who refused to sell or demanded higher prices, demand from Middle Eastern family offices has driven down yields on these bonds by approximately 5 percentage points in February.
This sudden shift suggests a growing confidence among investors to invest in Russian assets despite ongoing geopolitical uncertainty. However, this could also be a gamble that backfires if the market turns sour or sanctions are tightened further. The move highlights the eagerness of global investors to capitalize on an opportunity, even if it comes with significant risks.
Source: https://www.bloomberg.com/news/features/2025-03-12/war-in-ukraine-investors-bet-russia-is-coming-back-to-global-financial-markets