Complex Russian Share Swap Scheme Fails to Meet Expectations Amid Sanction Woes
Russian Share Swap Scheme: A Disappointing Outcome
A complex scheme devised by Moscow aiming to swap assets between Russian and western investors has spectacularly fallen short of expectations. With less than 10% of the original target of returning over $1 billion achieved, the scheme has faced significant hurdles.
Background of the Swap Scheme
- The Investitsionnaya Palata, a brokerage, managed to secure only Rbs8.1bn ($89mn) in funds.
- Over 708,000 Russians were able to obtain funds, contrasting sharply with the 3.5mn affected.
- The scheme received lukewarm interest from foreign investors, undershooting Kremlin expectations.
Challenges Faced By Investors
The initial enthusiasm for the swap scheme quickly waned. Foreign investors expressed concerns about the credibility of unknown Russian counterparts and potential sanction violations.
- Investors questioned the true nature of assets being offered.
- Sanctions from the US further dampened enthusiasm.
- Both Euroclear and Clearstream cautioned against participation, impacting overall sentiment.
The Future of the Swap Scheme
Although successful retail investors have received funds, foreign investors are still navigating complex regulations and challenges. The brokerage has not yet determined the next round of the swap program.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.