After a recent slump in the Russian stock market and a massive outflow of foreign capital, investors again feel an interest in earning from the steady recovery of Russian indices. In spring 2018, shares of Russian companies went into a downward spiral as the US again reinforced economic sanctions against Russia. As a result, foreign investors rushed to sell off these assets. As of April 1st, overseas traders had withdrawn securities worth almost $19 billion rubles. However, by the end of May investors channeled their funds back to Russia. The undervalued Russian shares are again in demand among investors. According to estimates of Russia’s central bank, foreign investors have already brought 60% of the previously withdrawn capital back to the Russian economy.
Experts say the main reasons behind such a sharp change in investors’ sentiment are growing oil prices and softening rhetoric among the EU policymakers. France’s President Emmanuel Macron stated at the International Economic Forum in St. Petersburg that Paris aims for leadership in investment in Russia’s economy.
