Middle Eastern investors are driving an uptick in demand for Russian assets, particularly USD-denominated bonds issued by energy giant Gazprom, as hopes for an end to Russian sanctions return amid ceasefire talks, Bloomberg reports. The number of transactions has remained limited due to limited supply, with bondholders either unwilling to sell or demanding high prices, which has pushed down yields on EUR- and USD-denominated Russian bonds, unnamed sources told the business news information service.

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What’s fueling the interest? US President Donald Trump’s expressed intentions to broker an agreement to end the Russia-Ukraine war, which fueled speculation about a potential easing of sanctions. Investors see this as a chance to buy discounted Russian assets in anticipation of a market rebound.

Investors are also exploring RUB-related investments through non-deliverable forwards — derivatives that provide indirect access to Russian markets without violating sanctions. Major investment banks, including Goldman Sachs and JPMorgan Chase, are reportedly facilitating such transactions.

Despite the optimism, Russian assets carry significant financial, legal, and reputational risks. If sanctions are not lifted — or are later reimposed — investors can face serious losses. Trump has sent mixed signals, warning of possible new banking sanctions on Russia while also preparing for negotiations. Even if sanctions were eased, Russia’s economy has increasingly become a war economy, raising concerns that foreign investments could indirectly support its military efforts, one expert noted.

The Kremlin also isn’t rushing to welcome back Western businesses, as the country imposed tough conditions on foreign firms after the war began, often forcing them to sell assets at high losses or to Kremlin-approved buyers. As a result, any return of Western investors may come with stringent terms, including demands for technology transfers and local production requirements.

ALSO FROM PLANET FINANCE-

Gold passed the USD 3k mark for the first time ever by the end of trading last week, with the precious metal set to return to trading tomorrow with a price of USD 3001.10 per ounce. Mounting Trump tariff tensions has pushed investors toward the safe-haven asset, driving the value of the yellow bricks up 13.6% since the start of the year.

EGX30

31,291

+0.8% (YTD: +5.2%)

USD (CBE)

Buy 50.58

Sell 50.72

USD (CIB)

Buy 50.60

Sell 50.70

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

11,726

+0.2% (YTD: -2.6%)

ADX

9419

+0.1% (YTD: 0.0%)

DFM

5141

-0.9% (YTD: -0.4%)

S&P 500

5639

+2.1% (YTD: -4.1%)

FTSE 100

8632

+1.1% (YTD: +5.6%)

Euro Stoxx 50

5404

+1.4% (YTD: +10.4%)

Brent crude

USD 70.58

+1.0%

Natural gas (Nymex)

USD 4.10

-0.2%

Gold

USD 3001.10

+0.3%

BTC

USD 84,357

-0.1% (YTD: -9.9%)

THE CLOSING BELL-

The EGX30 rose 0.8% at Thursday’s close on turnover of EGP 4.2 bn (19.7% above the 90-day average). International investors were the sole net sellers. The index is up 5.2% YTD.

In the green: EgyptAlum (+6.3%), Ibnsina Pharma (+5.7%), and Credit Agricole (+5.4%).

In the red: Palm Hills Development (-1.9%), EFG Holding (-1.8%), and Beltone Holding (-1.4%).

CORPORATE ACTIONS-

Credit Agricole Egypt lowered its proposed 2024 dividend payout to EGP 3.20 per share, representing 50.2% of distributable profits, down from a previously planned EGP 3.82 per share, or 60% of distributable profits, according to a board decision, an EGX disclosure (pdf) reads. The payout remains subject to the general assembly’s approval.

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