Global banks promote Russia's transactions to facilitate sanctions

“Goldman Sachs” Wajih Burgan “is, among other things, banks in the mediation role in facilitating the increasing demand by investors to trade asset in Russia. Both banks have made contact over the past few weeks, and they have derived financial contracts that depend on the Russian rowers- which are not allowed by Western sanctions, because they are not in the Russian materials or Russian parties. derivative contract, known as the non -delivered contract, is prohibited to distribute the ruble, and gives a legitimate way to take advantage of the high value of the currency without owning it. Zelinski was recently cited that the end of the war between Ukraine and Russia “is still very far.” McKina said he recently received offers from brokers to buy bonds issued by banks such as the European Bank for Reconstruction and Development and the World Bank. Although the effects are not subject to sanctions, the director of the investment portfolio said that the compliance team and its clients are likely to own it. JP Morgan, Goldman Sachs, the World Bank and the European Bank for Reconstruction and Development refused to comment. The most popular investors in the Middle East, given that trading in other types of markets, such as sovereign bonds and companies, or are prohibited by sanctions against Russia, or legally difficult for Western investors, the demand for the purchase of these assets comes mainly from hedge funds and family offices in the middle of the east. “AID Asset Management Hungary” in Budapest said he no longer has Russian effects in his records, but he added: “Even if we have it, we will not sell it in the current situation.” “Now it might be better to wait to find out what’s going to happen on the sanctions.” One of the traders said that the most sought after assets are the effects in dollars and that the euro was issued by Russian businesses such as “Gazprom” and “Luke Oil”. He explained that some of his clients, who in the recent period were almost valuable who considered the possession of effects, are now less likely to buy. Russian bonds thrive while the price indicators of Russian bond prices have risen over the past few weeks, but the purchase and selling price gap is still wide to 20 cents, which makes it difficult to accurately determine the average prices, according to the trader who asked not to disclose his identity when discussing these private transactions. This market increase may leave the effects of local companies, the value of which are estimated at billions of dollars, from failure to stumble within weeks. According to the data collected by “Bloomberg”, the total debt of Russian enterprises that traded has dropped by less than 80 cents per dollar of their nominal value, which is traded with a discount of over a thousand basis points (10%) compared to similar sovereign bonds, with 13% since the beginning of the year to $ 35.3 billion. It is one of the largest registered declines this year. (This indicates the increasing demand for these assets and the beginning of the market recovery). Kirian Curtis, head of the emerging market debt division in local currencies in the ‘Aberdeen’ group, said his company did not invest in Russian origin, but he received an offer from one of the mediators earlier this year to buy Russian government bonds issued by the rupel by the Ministry of Finance in Moscow. He pointed out that he had received a counseling price of about 40 cubaks per rubles (the cubic is a Russian sub -conditions, 1 rubles = 100 cubak) for short -term effects and about 16 to 19 cubiac for long -term effects that will be paid in dollars at a negotiable exchange rate between the parties. “Investors in some areas such as Istanbul, Dubai and Moscow may receive interest payments on Russian bonds.” Excessive optimism or an investment opportunity? However, some investors have warned against excessive speculation about Russian assets, given the complexity of the laws of the sanctions. In the United States, some restrictions in law were legalized and the approval of Congress was required before being canceled. Panville Mamai, the founding partner of the “Promertum Investment Management” increase, believes that investors who buy Russian bonds may not be able to achieve rapid returns. He concluded: “Investors have excessive optimism about the high value of Russian assets.”