In mid-2023, foreign investors held over 1 trillion rubles in Russian broker accounts, marking a 23% rise in the second quarter. This figure comes from data published by a major Russian financial newspaper, drawing on figures reported by the Central Bank of the Russian Federation.
The strongest growth occurred among clients with corporate accounts registered in offshore jurisdictions. These entities are often used to facilitate ongoing dealings with non-domestic partners. Interest from investment funds based in friendly nations has also climbed, with fund managers showing a willingness to assume greater risk to capture gains from undervalued assets in the market.
By quarter’s end, there was a clear uptick in the asset holdings of clients from international hubs and from more distant jurisdictions, including offshore centers. Analysts noted that choices of jurisdiction are typically driven by the legal protection of assets and favorable tax conditions. Yet, they also warned that strategic priorities could shift in response to geopolitical developments.
As the market moved into late summer, observers noted continued activity among foreign investors in Russian fixed income markets, particularly in the placement of Russian sovereign bonds. This activity occurred amid evolving local dividend policies affecting foreign holders and changes in the regulatory environment surrounding cross-border investments.
Overall, the period reflected a growing interest from global investors in Russia’s asset mix, reinforced by assessments of risk and opportunity in a landscape shaped by sanctions, currency considerations, and the evolving tax and legal framework for non-residents.