Russian assets back in demand amid ceasefire hopes

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.

What’s fueling the interest? US President Donald Trump’s expressed intentions to broker an agreement to end the Russia-Ukraine war has 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.

THE CLOSING BELL: TADAWUL-

The TASI rose 0.2% on Thursday on turnover of SAR 6.2 bn. The index is down 2.6% YTD.

In the green: Rasan (+9.9%), Chemical (+5.9%) and Srmg (+5.7%).

In the red: Nice One (-5.0%), Bahri (-4.3%) And Alandalus (-3.6%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.1% on Thursday on turnover of SAR 29.7 mn. The index is down 1.1% YTD.

In the green: Alrashid Industrial (+24.0%), Neft Alsharq (+14.3%) and Aljouf Water (+12.5%).

In the red: NBM (-15.3%), Amwaj International (-8.8%) and SMC (-4.9%).

CORPORATE ACTIONS-

Mulkia Investment’s board plans to boost the company’s capital by 20% to SAR 78 mn via a bonus share issuance, it said in a disclosure to Tadawul. The SAR 13 mn capital increase will be funded from Mulkia’s retained earnings with shareholders receiving one bonus share for every five shares held. The increase is pending regulatory and general assembly approval.

ALSO- Mulkia board recommended a SAR 16.3 mn dividend payout for FY 2024 at SAR 2.5 per share, it said in a separate disclosure. The distribution date has yet to be determined.

Astra Industrial Group’s board recommended distributing SAR 240 mn in dividends for FY 2024 at SAR 3 per share, it said in a filing to the exchange. Eligibility and distribution dates are yet to be announced.

First Milling’s BoD greenlit a SAR 71.6 mn dividend distribution for 2H 2024 at SAR 1.29 apiece, according to a filing to the exchange. The distribution date is set for 22 April.