Last year, the influx of foreign investors set a record since 2012
In 2019, the influx of investments in Russian government debt from foreign investors reached $22.2 billion, which follows from the assessment of the balance of payments prepared by the Central Bank. This is the maximum amount of investment since 2012, when it was $17.1 billion.
The volume of investments was compiled by federal loan bonds and sovereign eurobonds. According to Sophia Donets, an analyst at Renaissance Capital, non-residents invested about $15 billion in bonds and $7 billion in eurobonds. The economist also noted that investor inflow will decrease in the new year, as the state issues eurobonds ever less. There is also the risk of their non-deployment if new sanctions are introduced. According to Sophia Donets, foreign investors expected lower interest rates when they bought federal loan bond, but this opportunity has almost became obsolete.
In 2018, non-residents withdrew from Russian sovereign bonds. Withdrawal of portfolio deposits amounted to $5.3 billion.
The Central Bank Risk Survey compiled by the Central Bank says that by the end of the year, part of the deposits of foreign investors in federal loan bond on the accounts of foreign depositories in the National Settlement Depository was 31.5%. In 2018, it was 23.6%.
ING lead economist Dmitry Dolgin told RBC that in 2019, an increase in investor demand for assets in growing markets coincided with a relaxation of sanctions against Russia. The inflow of non-residents to the market was achieved due to the slowdown in inflation and the preservation of high refinancing rates.