“Russian politicians may be warning that U.S. sanctions will backfire and undermine the dollar, but to the middle classes, the appeal of investing abroad is only increasing,” Anna Baraulina reports for Bloomberg.
“TCS Group Holding Plc became Russia’s fifth-biggest brokerage by active clients in the space of just a few months by offering mostly foreign stocks,” Baraulina reports. “Its most popular investments include Apple Inc., Amazon.com Inc., Alphabet Inc. and Facebook Inc., according to Alexander Emeshev, vice president of Tinkoff Bank, which opened the trading unit in May… About half of the 13 billion rubles ($194 million) invested by TCS clients is in foreign companies, Emeshev said. It has accumulated more than 16,000 active clients, and about 80 percent of the stocks it offers are foreign, he said.”
“The demand for foreign shares runs counter to the Russian government’s party line, with Foreign Minister Sergei Lavrov warning this week that the abuse of sanctions by the U.S. will ultimately hurt the dollar’s credibility,” Baraulina reports. “Yet with Russian deposit rates declining, markets in turmoil with each new round of trade restrictions and the ruble sinking to a more than two-year low, more money is being sent overseas.”
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MacDailyNews Note: More info about the latest round of U.S. sanctions against Russia via Bloomberg News here.