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Russia & CIS

Russian Banks Come Under Pressure as Kremlin Tweaks Taxes to Support Pandemic-Hit Economy

The Russian government introduced sweeping changes to the tax regime in order to support businesses and SMEs, while seeking to secure additional revenue streams elsewhere. But while the country’s ample FX reserves should see it fare better than many EM peers, its banking sector – subject to a massive and prolonged consolidation over the past five years – is also feeling the squeeze.

27 Mar 2020

Bips & Pieces Russia & CIS Banking

Kazakhstan Bucks Trend as Other Central Banks Follow US Fed in Slashing Rates

Central Asian republics have scrambled to raise rates as their currencies plummeted following a double blow from COVID-related market turmoil and a collapse in the oil price.

17 Mar 2020

CASE STUDY: Russian Railways Rides Through Volatility with Record-Breaking CHF250mn Green Bond

The issuer “boarded the last train” as EM bonds plummeted on the back of coronavirus-related fears, securing the tightest pricing for any Russian corporate issuing in the swiss franc market.

13 Mar 2020

Non-Resident Share in OFZs Rises in March as Russia Suspends Upcoming Auctions Amid Sell-Off

The share of non-resident investors holding the Russian Treasury’s rouble-bonds (OFZs) has reached 34.1% this month, up from 33.2% at the start of February, according to data published by the Russian Central Bank.

13 Mar 2020

Russian Railways “Catch the Last Train” with Record-Setting Swiss Franc Green Bond

The new 6-year notes, part of RZD’s green bond programme, priced at a stunning 0.84% just as global markets began shutting down due to coronavirus-related shocks.

11 Mar 2020

Russia’s GTLK Braves Market Volatility to Issue USD600mn Eurobond

The issuance came at a significant premium and questions have been raised about the timing, as a 50bp Fed rate cut arrived shortly after the placement.

5 Mar 2020

Russian Government Issuance Surged in 2019, RUB and Hard Currency Bond Yields Diverge

Demand for government notes grew 1.5x from 2018, but was outpaced by more than 3x increase in supply, according to official state figures.

4 Mar 2020

IMF Marks “Good Progress” in Ukraine Visit, but More Reforms Needed

The International Monetary Fund said this week that it had made good progress in talks with the Ukrainian authorities over the approval for a new loan programme to Ukraine worth USD5.5bn but its disbursement depends on Kiev’s performance on reforms, including a special law on banking.

3 Mar 2020

Risk of Oil Price Collapse ‘High’ as Russia Urges Caution on OPEC+ Action - Standard Chartered

Russia’s slowness to respond to a fall in demand for oil following the coronavirus outbreak could send oil prices plummeting to as low as USD30 per barrel, according to analysts at Standard Chartered Bank.

2 Mar 2020

Sberbank Net 2019 Profits Surge Following Denizbank Sale

Russia’s biggest lender posted a 20% y-o-y jump in profits for 4Q2019, as it prepares for the looming change of the controlling shareholder.

27 Feb 2020

Regulatory Tweak Could Boost Russian Corporate Green Loans Pipeline

A new mechanism to compensate for the “green premium” on loans could incentivise businesses to tap the nascent market.

26 Feb 2020

Russian Government Reshuffle Spreads to MinFin as Another Key Minister Set to Leave

Storchak, a veteran of the finance ministry is expected to resign in coming days, according to state media reports.

18 Feb 2020

Russia Sovereign Wealth Fund to Buy Out Central Bank Stake in Sberbank

The move is expected to ease concerns about the potential conflict of interest (regarding the CBR’s partial ownership of Russia’s biggest bank) and should provide additional funds for the “January Revolution” of additional social spending announced by President Putin at the start of this year.

17 Feb 2020

Sovcombank Sees Opportunities in Russia’s National Projects, Retail, and Green Finance

A number of large Russian banks were briefly teetering on the edge three years ago, as the industry was hit by a wave of bankruptcies and bad headlines. What followed was a five-year cleanse of the sector by the Central Bank and affiliated government agencies, and those lenders that came out unscathed at the end of it are now reaping the benefits of a less crowded and more stable industry. One of…

14 Feb 2020

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