In the wake of Zelensky agreeing to a 30-day ceasefire and Putin expected to hold talks with Trump on Tuesday, investors are reportedly jumping back into Russian assets, but not everyone is ready to trust Putin.
The Financial Times points out that the rouble has had a strong rally in hopes of a final peace deal, and money is betting that sanctions will be rolled back soon as well. Earlier this month, The Economist was already pointing to renewed interest in Russian markets as “both ominous and promising.”
A senior fellow and macroeconomic strategist at the Hungarian Institute of Foreign Affairs, Philip Pilkington, took to X to highlight the article and the trend of new investment in Russia: “Hedge funds are scrambling to buy up underpriced Russian assets. All the smart money is on peace and a renormalization of relations. Only the europoors believe otherwise – and that’s why they’re poor.”
As FT writes, investors are betting on Russian bonds and the rouble, with many hedge funds strategizing on how to benefit from the potential shift towards peace and an end to U.S. sanctions.
As a result, the rouble has jumped a third this year against the dollar.
However, the reality is that many Western countries and companies never stopped doing business with Russia throughout the conflict. In fact, there is an entire website dedicated to the hundreds of multinational corporations still with operations in Russia.
Last year, Remix News also reported on Europe’s surge in oil and gas imports from Russia, all which helped prop up Russia’s wartime economy.
While European leaders are calling for a boost in defense spending to counter Russia in the future, there are also already whispers of Germany restarting the Nord Stream 2 pipeline to ensure cheap gas for the European economy. Many business leaders in Germany and other European economies are also ready to jump back into Russian markets should the war end.
