© Ilya Naymushin / Reuters
According to the analysis, which includes data from Emerging Portfolio Fund Research (EPFR), foreign investors allocated total of $146 million for the week through March 14, which is greater by a third compared to $112 million invested during the previous week. All the investments have come through global funds, Russian business daily Kommersant reports.
The EPFR estimations show that global funds boosted investments in Russian assets up to $637 million over three weeks through March 14 amid strong demand from foreign investors for emerging markets.
Last week, the Russian Finance Ministry raised four billion dollars through the issue of Eurobonds. Institutional investors from the UK bought up half the 2047 notes on offer, with Russian investors the biggest purchasers of a new 11-year bond, according to VTB Capital, which carried out the bond placement. State-run Russian energy giant Gazprom issued a separate $750 million Eurobond that had been three times subscribed, according to the ministry.
Russia's borrowings are still very profitable and investors like that, according to the CEO at Van-Der-Black investment group, Stas Mashagin, as quoted by Business FM.
"Everyone is still trying to earn as much as possible by means of a state budget. That's why interest to our obligations will retain until annual interest rates drop to 3-4 percent. Our country restructures and pays off all the debts, including those by the USSR. This high level of solvency is very important for investors," Mashagin told the media.
Comment: Regardless of the relentless propaganda and irrational sanctions, investment will go where there's profit to be made - and the West's position is looking increasingly precarious:
- The Americans are coming! ... to Russia
- Russian economy under Putin: Quality of life tripled, foreign debt fell 75%
- Russia's economy continues to climb as foreign investments double in 2017
- Anti-Russian sanctions led to increased efficiency, lowering of debt and boon for manufacturing in the country
- France: anti-Russian sanctions 'contrary to our vision of multilateral organisation', sees 'relations rebalancing'
- EU's economy can't bear anti-Russian sanctions, both agree to lifting 'trade barriers'
- MI5 Poisons Another Russian Asset to Smear Putin in Ongoing Propaganda War
- Skripal Likely Poisoned by British Intelligence in Effort to Smear and Silence Russian World View
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