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https://www.rt.com/business/417462-russia-budget-kremlin-list-treasury/
US Treasury’s blacklist could provide a huge boost for Russia’s budget
Published time: 31 Jan, 2018 09:22 Edited time: 31 Jan, 2018 10:40
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Russian President Vladimir Putin © Kirill Kudryavtsev / Reuters
Russian billionaires could soon be forced to bring their capital home. While the US Treasury’s ‘Kremlin List’ does not imply sanctions yet, it may be a signal that wealthy Russians could lose their money abroad.
Read more
Some Russian businessmen made the US blacklist just for being successful
“The return of capital to the country began a few years ago when Russian citizens began to lose assets abroad, and foreign governments did not always follow the law. This has already led to the consolidation of rich people around the country’s leadership,” Gleb Zadoya, head of analytics at Analitika Online, told RT.
Sanctions and pressure in the West do not necessarily mean that capital will return to Russia, as there are other markets like India and China, and this is why the Russian government offers its tycoons capital amnesty, low taxes, and other benefits. And if the sanctions continue for at least one year more, “Russia will have the opportunity to use ‘external’ investments,” if the necessary infrastructure is created by both business and government, Zadoya said.
“Most likely, citizens who are on the Kremlin List will at least think about returning capital to Russia or other jurisdictions in order to protect themselves if the Americans begin to impose real restrictions. Moreover, Russia has special tools that would allow the oligarchs to bring their money back into the country. These are confidential bonds, designed for the return of money back into the country,” Forex Optimum analyst Ivan Kapustiansky said.
If wealthy Russians decide to keep their assets and capital abroad, they risk losing them forever, according to Sergey Kostenko, an investment analyst at Global FX. It’s one thing when you go somewhere else to spend money; it’s quite another thing when you try to become part of the local elite, he added.
Read more
European investors warn of potential damage from US Treasury ‘Kremlin List’
“Assessing the potentially gloomy prospects, we can say that a significant part of the capital will return to their homeland with a high degree of probability. There will be bargaining with the authorities on the terms, but in the end it will be done, not because it is desirable to do so, but because there will be no choice,” Kostenko said.
There is also a point of view that the ‘Kremlin List’ will hardly change anything, as it doesn’t come out of the clear blue sky.
“Most likely, some measures have already been taken, because the first sanctions were introduced almost four years ago. It was obvious that the sanctions are here to stay, given the positions of Russia and the US on Crimea; it is possible they are forever. The ‘Kremlin List’ was announced six months ago; why wait for it? It is better to take care of everything in advance. Some rules will change, but, most likely, we should not expect any massive return of capital to Russia,” Teletrade financial consultant Mikhail Grachev said.
Mikhail Mashchenko, an analyst at a social network for investors in Russia and the CIS – eToro – says the new list does not imply sanctions yet.
“There are no specifics on this list, and it is likely that those wishing to continue their life abroad can find loopholes. It is unlikely that such a broad list will be subject to stringent restrictions and it is possible that in the future it may be reduced,” he said.
For more stories on economy & finance visit RT's business section
https://www.rt.com/business/417699-russian-stocks-kremlin-list/
No ‘black swan’ for Russian markets as stocks & ruble ignore US blacklist
Published time: 2 Feb, 2018 12:04
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© Global Look Press
Investors in Russia shrugged off the US Treasury's so-called ‘Kremlin List’ targeting Russian businessmen. Stocks on the Moscow Exchange are trading near all-time highs, while the ruble remains stable.
Read more
Some Russian businessmen made the US blacklist just for being successful
The ruble-denominated MICEX index was trading near the 2,291 mark on Friday, inching towards the all-time high of 2,328.48 it hit last week. The dollar-based RTS index slid 1 percent to 1,282 points.
The Russian ruble has continued to gain against the US dollar over the last 52 weeks, trading at 56.28 against the greenback.
"Really, a 'black swan' has not occurred, but the message of a worsening of bilateral relations is quite clear," said Danske Bank analyst Vladimir Miklashevsky, as quoted by Reuters.
According to the analyst, investors are reassured that Russian Central Bank governor Elvira Nabiullina was not named on the list.
Shares in Sberbank, Russia's largest bank, whose CEO Herman Gref is on the Treasury's blacklist, rallied to an all-time high of 259 rubles (around $4.6) per share.
"It will be important how Western, European businesses react since they do, in one way or another, work with the companies whose owners are now on this list," said ING chief economist Dmitry Polevoy.
"Whether or not there's some real effect from this list depends on their reaction."
US Treasury’s blacklist could provide a huge boost for Russia’s budget
Published time: 31 Jan, 2018 09:22 Edited time: 31 Jan, 2018 10:40
Get short URL
Russian President Vladimir Putin © Kirill Kudryavtsev / Reuters
Russian billionaires could soon be forced to bring their capital home. While the US Treasury’s ‘Kremlin List’ does not imply sanctions yet, it may be a signal that wealthy Russians could lose their money abroad.
Read more
Some Russian businessmen made the US blacklist just for being successful “The return of capital to the country began a few years ago when Russian citizens began to lose assets abroad, and foreign governments did not always follow the law. This has already led to the consolidation of rich people around the country’s leadership,” Gleb Zadoya, head of analytics at Analitika Online, told RT.
Sanctions and pressure in the West do not necessarily mean that capital will return to Russia, as there are other markets like India and China, and this is why the Russian government offers its tycoons capital amnesty, low taxes, and other benefits. And if the sanctions continue for at least one year more, “Russia will have the opportunity to use ‘external’ investments,” if the necessary infrastructure is created by both business and government, Zadoya said.
“Most likely, citizens who are on the Kremlin List will at least think about returning capital to Russia or other jurisdictions in order to protect themselves if the Americans begin to impose real restrictions. Moreover, Russia has special tools that would allow the oligarchs to bring their money back into the country. These are confidential bonds, designed for the return of money back into the country,” Forex Optimum analyst Ivan Kapustiansky said.
If wealthy Russians decide to keep their assets and capital abroad, they risk losing them forever, according to Sergey Kostenko, an investment analyst at Global FX. It’s one thing when you go somewhere else to spend money; it’s quite another thing when you try to become part of the local elite, he added.
Read more
European investors warn of potential damage from US Treasury ‘Kremlin List’ “Assessing the potentially gloomy prospects, we can say that a significant part of the capital will return to their homeland with a high degree of probability. There will be bargaining with the authorities on the terms, but in the end it will be done, not because it is desirable to do so, but because there will be no choice,” Kostenko said.
There is also a point of view that the ‘Kremlin List’ will hardly change anything, as it doesn’t come out of the clear blue sky.
“Most likely, some measures have already been taken, because the first sanctions were introduced almost four years ago. It was obvious that the sanctions are here to stay, given the positions of Russia and the US on Crimea; it is possible they are forever. The ‘Kremlin List’ was announced six months ago; why wait for it? It is better to take care of everything in advance. Some rules will change, but, most likely, we should not expect any massive return of capital to Russia,” Teletrade financial consultant Mikhail Grachev said.
Mikhail Mashchenko, an analyst at a social network for investors in Russia and the CIS – eToro – says the new list does not imply sanctions yet.
“There are no specifics on this list, and it is likely that those wishing to continue their life abroad can find loopholes. It is unlikely that such a broad list will be subject to stringent restrictions and it is possible that in the future it may be reduced,” he said.
For more stories on economy & finance visit RT's business section
https://www.rt.com/business/417699-russian-stocks-kremlin-list/
No ‘black swan’ for Russian markets as stocks & ruble ignore US blacklist
Published time: 2 Feb, 2018 12:04
Get short URL
© Global Look Press
Investors in Russia shrugged off the US Treasury's so-called ‘Kremlin List’ targeting Russian businessmen. Stocks on the Moscow Exchange are trading near all-time highs, while the ruble remains stable.
Read more
Some Russian businessmen made the US blacklist just for being successful The ruble-denominated MICEX index was trading near the 2,291 mark on Friday, inching towards the all-time high of 2,328.48 it hit last week. The dollar-based RTS index slid 1 percent to 1,282 points.
The Russian ruble has continued to gain against the US dollar over the last 52 weeks, trading at 56.28 against the greenback.
"Really, a 'black swan' has not occurred, but the message of a worsening of bilateral relations is quite clear," said Danske Bank analyst Vladimir Miklashevsky, as quoted by Reuters.
According to the analyst, investors are reassured that Russian Central Bank governor Elvira Nabiullina was not named on the list.
Shares in Sberbank, Russia's largest bank, whose CEO Herman Gref is on the Treasury's blacklist, rallied to an all-time high of 259 rubles (around $4.6) per share.
"It will be important how Western, European businesses react since they do, in one way or another, work with the companies whose owners are now on this list," said ING chief economist Dmitry Polevoy.
"Whether or not there's some real effect from this list depends on their reaction."
