Russian MinFin expects non-residents to return to stock market once geopolitical situation stabilizes

MOSCOW. April 16 (Interfax) - Foreign investors will return to the Russian stock market as soon as the geopolitical situation becomes more stable, Deputy Finance Minister Alexei Moiseyev said.

"When we were drafting the decree [of the Russian president on new non-resident investments] jointly with the Bank of Russia, and when the president agreed to sign it, everyone expected it would be signed [and new money would flow into the market], but then Donald Trump said something or other... Then one war started, then another, I mean Israel, Iran, and so on. All this is clearly not conducive. I'm sure that just one year without new wars in the world and Western investors will definitely come, I do not doubt it. Of course, not to the same extent as before, but I'm sure they'll rank high," Moiseyev said during the Moscow Exchange Forum.

He said funds for investing foreign money in the Russian market had already begun to emerge last summer.

"I'm just convinced that we need a little stability, when people stop relying on safeguard assets en masse. Everyone is opting for a defensive strategy whether or not war in Iran is about to start again," Moiseyev said.

On July 1 last year, President Vladimir Putin signed Decree No. 436 on additional guarantees for foreign investors' rights, whose provisions apply to non-residents from both friendly and unfriendly countries. For new investments, they need to open a new type of account - an "In" account. Funds from these accounts can be moved abroad.

The Moscow Exchange enabled "In" accounts to be opened in December. Non-residents can now anonymously trade all Russian stocks, bonds and mutual fund units in standard mode (with T+1 settlements), as well as financial derivatives on the currency and precious metals markets. They can also enter sign repo transactions and participate in initial public offerings of securities.