Russian President Vladimir Putin has authorized select international funds, including American firms, to sell Russian securities. The country is easing financial restrictions present in the ongoing US sanctions as the Putin-Trump talks continue.
According to Bloomberg, the decision was announced through a presidential decree on Monday, just one day before Putin is scheduled to speak with US President Trump regarding a potential ceasefire in Ukraine.
BREAKING: Vladimir Putin is allowing some international funds, including American ones, to sell Russian securities.
This comes a day before talks with President Trump regarding a ceasefire in Ukraine. pic.twitter.com/qv8WnhNgdH
The decree grants US-based hedge fund 683 Capital Partners LP permission to buy Russian securities previously owned by about a dozen Western asset management firms and hedge funds. Franklin Advisers Inc., Templeton Asset Management Ltd., and Baillie Gifford Overseas Ltd. are among the funds receiving the right to sell their assets.
Two Russian entities have been authorized to conduct securities transactions with the New York-based financial firm. 683 Capital Partners, founded in 2006 and led by Ari Zweiman, manages approximately $1.95 billion in assets across its main fund and an offshore feeder fund, according to regulatory filings.
Sanctions slowly get lifted after 3-year trading hiatus
Western exchanges halted trading of Russian securities in 2022, forcing transactions into over-the-counter markets. Sanctions imposed in response to Russia’s full-scale invasion of Ukraine severed links between Russian and Western financial markets.
This prevented funds from offloading their Russian holdings and forced the country to create special accounts to hold securities belonging to Western investors.
Following the decree, the Russian ruble climbed to 87 per dollar, nearing its highest level in seven months, before falling to 83 later in the day, according to Trading Economics. Speculation has intensified over the possibility of US sanctions being lifted, particularly because of the Trump administration’s friendly ties with Putin.
Chatter across Washington suggests that the White House is seriously considering easing restrictions on Russia, reiterating Trump’s previous statements about restoring economic ties with Moscow.
The sentiment has also been buoyed by Trump’s push for a 30-day ceasefire in Ukraine, a proposal Ukraine’s President Zelensky has reportedly agreed to. Economists coin the possibility of a peace deal, which could include terms favorable to the Kremlin, as bullish for the ruble.
Trump-Putin talks on ceasefire and trade
Kremlin spokesman Dmitry Peskov confirmed that Putin and Trump are scheduled for a phone conversation on Tuesday, though he declined to provide details about the planned discussions. Trump has made several hints at possible concessions in ceasefire negotiations, including territorial adjustments and control over infrastructure, but Moscow has remained tight-lipped.
“Yes, it is true, such a conversation is being prepared for Tuesday,” Peskov told reporters. Still, he refused to comment on Trump’s remarks about potential compromises in the talks, saying, “We never get ahead of events. The content of conversations between two presidents is not subject to any prior discussion.”
Alongside diplomatic engagements, US and Russian representatives have purportedly begun informal discussions on business collaborations, including in the energy sector, although no official agreements have been announced yet.
Investors prepare for market reopening
The ruble has surged by nearly a third against the dollar this year, all thanks to some optimistic takes over an end to the conflict and the potential rollback of sanctions. Some investors believe the US market is getting ready for more Russian-friendly policy changes under Trump’s leadership.
“Some of Trump’s rhetoric about Russia is erratic, and this is something you have to factor in, but this is about the lifting of sanctions,” said Paul McNamara, investment director at GAM.
Ongoing restrictions haven’t stopped some hedge funds from exploring opportunities in Russian bonds that were once deemed nearly worthless after the 2022 invasion. The assets have gained some value in internal assessments, and economists predict that more will come after Putin and Trump finally come to a common understanding.
“There is definitely some excitement, predominantly in the hedge fund community,” Roger Mark, a fixed-income analyst at investment firm Ninety One, told the Financial Times.
Still, Mark noted that Russian bonds are largely off-limits to foreign institutional investors due to compliance rules, and it’s a heavy ask for most Western funds to directly re-enter the Russian market as of now.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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