Russian assets may have dodged a bullet as the latest round of U.S. sanctions turned out to be less sweeping than initially feared.
It was only after markets closed that the United States released the details, showing the limits were narrower than feared — banning U.S. banks from new issues of Eurobonds but leaving the much-larger market for ruble securities, known as OFZs, unaffected.
Still, the sudden surprise from the White House last week was a rough reminder for a market that had for most of this year put aside sanctions fears to cash in on some of the highest real rates in the world.
With the ruble the second-best performer among emerging-markets currencies through the end of July and local-currency bonds returned about 17 percent, the equivalent of $13 billion in foreign money flooded into the market by the end of July.
Article source: http://www.dailystar.com.lb//Business/International/2019/Aug-05/489044-ruble-set-for-relief-as-sanctions-are-more-bark-than-bite.ashx