German journalist: Russian economy has developed immunity to Western sanctions

German journalist: Russian economy has developed immunity to Western sanctions

The sanctions pressure of the European Union and the United States on the Russian economy has been dragging on for years and may well increase, which, however, does not cloud the situation on the Russian stock market at all, says the article by Katharina Wagner for Frankfurter Allgemeine.

According to her, despite the fact that the growth of the Russian economy in the first quarter of this year was only 0.5%, this was not a reason for the fall in the level of foreign investments, which is facilitated by a number of factors.

Thus, since the beginning of spring, the background index, which is expressed in dollars, has grown by 10 percent, having reached the rate at the beginning of last year, that is, the period preceding the collapse of the Russian stock market due to regular restrictive measures by Washington. At the same time, the Moscow Exchange index rose by almost 30 percent from the beginning of last year, and the ruble strengthened its position.

All this allowed “to make Russia attractive for investors again,” the author writes. However, she stresses, a much more decisive role was played by the fact that “the fear of new sanctions passes.” Over the past five years, while the West has thrown Russia at restrictions, Moscow has methodically developed financial and political measures that stabilize the country’s economy. Among others, Wagner noted the transfer to the National Welfare Fund of oil revenues at a cost exceeding $ 40.

“Taking into account financial and political stability, government bonds of the Russian Federation are becoming attractive,” she noted. “In the first months of this year, Moscow issued more securities than for the entire past, even in dollars, and very successfully. In May, 40 percent of the bonds were sold to outside investors.”

At the same time, it is necessary to take into account the fact that the more securities will be in the hands of foreign financial structures, the less chances that the West will go to increase economic pressure on Russia.

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