In the past seven weeks, over $500 million of foreign investment has come into Russia according to data from Emerging Portfolio Fund Research (EPFR). Gazprombank analyst Andrey Klapko told Russian daily Kommersant:
"With the stabilization of the geopolitical situation in Ukraine, the recovery in oil prices and the strengthening of the ruble, international investors are showing interest in undervalued ruble-denominated assets."
The trend comes as investors pull their money from emerging markets, which lost $3.5 billion in the past week. The recent rally of the US dollar has devalued assets in many countries, as their currencies depreciated in relation to the dollar.
Relations between Moscow and Brussels deteriorated after Crimea's reunification with Russia in March 2014. The European Union, the United States and Canada imposed several rounds of anti-Russia economic sanctions, accusing the country of fueling the armed conflict in Ukraine. Russia rejected the accusations and responded with counter-sanctions.
