Russia Assets Surmount Sanctions as Putin Comes in From the Cold

Swedbank Robur in Stockholm bought shares in state-owned Russian companies and NN Investment Partners in The Hague said it was reconsidering its underweight stance on stocks after the Group of 20 summit brought Russia closer to an alliance with the U.S. in the fight against terrorism. Russian stocks rallied the most worldwide on Tuesday after Zambia and bonds gained on speculation the rapprochement would lead to an easing of sanctions over the Ukraine conflict.

“Russia is no longer seen as a villain like a year ago,“ said Elena Loven, who is adding „liquid and cheap“ stocks to the 1 billion-euro ($1.07 billion) portfolio she helps manage at Swedbank Robur. „The political risk that was priced into Russian assets is declining. Foreigners, who were mostly underweight Russia, are now buying Russian blue chips in a panic.“