Moscow Exchange partially reopens for foreign investors

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Moscow Exchange partially reopens for foreign investors

After a nearly six-month suspension during the Ukraine war, the Moscow Exchange will be partially reopened for foreign investors on Monday.

Only investors from countries that are not hostile will be allowed to trade bonds.

The move excludes many of Russia's largest investors who have imposed sanctions on its economy.

Russia had shut down its markets in February to prevent money from leaving the country during the war.

The Moscow Exchange said that it would be reopening its bond market to non-resident clients from countries that are not hostile, as well as non-residents whose ultimate beneficiaries are Russian legal entities or individuals, and that China and Turkey are likely to be among these nations, as they have not imposed sanctions against Russia.

The exchange said that banks, brokers and investment management companies had started registering their foreign clients with the exchange.

On February 24th, Russia closed its stock and bond markets after President Vladimir Putin sent thousands of troops into Ukraine.

In March, it began a phased re-opening of bonds issued by the Russian government.

These countries are members of the European Union, Canada and Japan. 90 percent of investments were made into Russia last year by the group.

Russia's invasion of Ukraine and Western governments' sanctions have taken a toll on its economy.

The country is believed to have defaulted on its debt in June for the first time since 1998.

While it had money to make a $100 m 82.5 m payment, sanctions made it impossible to get the sum to international creditors.

Dmitry Peskov, a Kremlin spokesman, said that an intermediary bank had withheld the money and that the reserves were blocked unlawfully.