Weekly Bond Update: Looking back at Russia
- Russian bonds managed to skirt around the edges of global turmoil
- Relative economic stagnation has created fertile ground for bonds
- Russia still has serious issues to contend with and problems remain unsolved
those who'd like to take a bit of a punt on the Russian bonds market. Photo: Simon Fasdal
By Simon Fasdal
More worryingly, oil prices are higher but not high enough long term to avoid a restructuring of the Russian economy. This will take hard work and cuts on budget spending, forcing Russia to find other means of income, than being highly dependent on commodity price fluctuations. Preferably oil should return to above $60/barrel, whcih would be really good news the Russian economy.
The positive boost from the asset side has together with other factors brought Russian growth higher, with projections of entering positive territory early next year.