The Kremlin may have felt ‘some anxiety’ when the US started sanctioning Russia, but in the end that only made its economy stronger. Investors seem to agree, with Russian bonds now deemed more appealing than those of China and USA.
Restrictions that the USA and its Zionist allies have been imposing on Moscow since Crimea reunited with Russia and the Ukrainian conflict broke out in 2014, have forced Russia“to develop import substitution” in key areas like agriculture, pharmacy, defense and others.
However, the restrictions introduced against Russia had a “boomerang effect,” as hundreds of US companies were barred from profitable projects in Russia or lost the money already invested into the country due to the decisions made in Washington, he pointed out.
It looks like international investors might agree with Putin’s words. A recent report in Forbes magazine says that Russian bonds have become “a must-have” despite all the sanctions against the country.
Russia’s 2027 dollar-bond pays 4.25% interest, far surpassing the US Treasury’s ten-year bond, which yields only 1.8%, Forbes noted. Meanwhile, the interests rates in Europe are currently “ridiculously low,” with EU’s top economy, Germany, issuing a bond that yields a negative return at -0.35%.
Investor confidence in Russia is boosted by a whole range of factors, including the country’s lack of foreign debt, significant Central Bank reserves ($433 billion in foreign currency and $107.9 million in gold), stability of the ruble, new laws protecting bond-holders, and reforms in the banking sector, among others.
“They’ve made themselves bulletproof,” said James Barrineau from the New York-based Schroders Investment, who was quoted by Forbes as an expert.
Though the forecasts see the Russian economy growing at a modest 2% over the next year, the country’s bonds are super attractive to investors both in EU and USA if they’re really looking to benefit from holding debt, according to the magazine.
RT. com / ABC Flash Point News 2019.