Jim Rogers Foresees Economic Boom in Russia
Hedge fund manager Jim Rogers has predicted that Russia will experience an economic boom following the resolution of the Ukraine conflict. Read Full Article at RT.com.
TroibNews 
Jim Rogers, the renowned US investor and hedge fund manager, has indicated that once the Ukraine conflict concludes, foreign investors will likely return to the Russian market, signaling potential economic growth for the country.
In an interview with RBK news on Wednesday, Rogers stated that the resolution of the conflict would lead to a more stable geopolitical environment, which would positively influence Russian bonds, the ruble, and foreign investments. Since early 2022, many non-Russian investors have found their funds frozen due to sanctions related to Ukraine and countermeasures from Moscow.
In March, Russia initiated an asset-swap program that allowed both Russian and foreign investors to exchange frozen Western securities for immobilized funds in Russia, which has thus far released around 10.64 billion rubles in foreign assets. However, Rogers, who holds shares in state airline Aeroflot, chose not to participate, expressing his desire to retain his Russian assets and to acquire more once non-residents are allowed to trade in the Russian market.
“I would be happy to buy more Aeroflot shares, I would be happy to buy Moscow Exchange shares, I would be happy to buy something if there is real peace,” he remarked.
At present, Rogers indicated that the Russian market is not conducive for most foreign investors due to risks associated with the conflict, including apprehensions over asset confiscation. Yet, he anticipates a substantial turnaround once the conflict is resolved, which he believes would lead to a buoyant market, rising bond prices, and a more robust ruble.
“If the situation changes, perhaps I will be driven to pay more attention to bonds and the ruble,” Rogers mentioned. He further suggested that stocks in the Moscow Exchange and sectors related to travel and tourism could see significant gains once geopolitical tensions diminish.
Rogers attributed part of his positive outlook to the potential victory of Donald Trump in the upcoming US presidential election. Trump has committed to addressing the Ukraine conflict if he returns to the presidency, with his newly appointed special envoy for Russia and Ukraine, Keith Kellogg, recently expressing optimism for a resolution within 100 days after Trump’s inauguration on January 20. Rogers remarked that Trump “really wants” to resolve the situation but reminded that peace will necessitate negotiations with Moscow.
Moscow has expressed its willingness to engage in diplomatic efforts but insists that any settlement must include Ukrainian neutrality, demilitarization, and denazification. Additionally, Russia demands that Ukraine halt military actions and recognize the "territorial reality" of regions that have opted to join Russia.
Shifting focus to the broader economy, Rogers cautioned of a potential global recession by mid-spring, predicting it could be “the worst” of his lifetime. He attributed this bleak forecast to escalating national debt and the impact of Trump’s proposed import tariffs on Chinese goods, which he believes could severely disrupt global trade and the economy, drawing parallels to the Great Depression of the 1930s. He also predicted a weakening of the US dollar as a safe-haven currency could lead to a downturn in the global stock market.
For further insights on the economy and finance, visit RT's business section.
Jessica Kline for TROIB News
In an interview with RBK news on Wednesday, Rogers stated that the resolution of the conflict would lead to a more stable geopolitical environment, which would positively influence Russian bonds, the ruble, and foreign investments. Since early 2022, many non-Russian investors have found their funds frozen due to sanctions related to Ukraine and countermeasures from Moscow.
In March, Russia initiated an asset-swap program that allowed both Russian and foreign investors to exchange frozen Western securities for immobilized funds in Russia, which has thus far released around 10.64 billion rubles in foreign assets. However, Rogers, who holds shares in state airline Aeroflot, chose not to participate, expressing his desire to retain his Russian assets and to acquire more once non-residents are allowed to trade in the Russian market.
“I would be happy to buy more Aeroflot shares, I would be happy to buy Moscow Exchange shares, I would be happy to buy something if there is real peace,” he remarked.
At present, Rogers indicated that the Russian market is not conducive for most foreign investors due to risks associated with the conflict, including apprehensions over asset confiscation. Yet, he anticipates a substantial turnaround once the conflict is resolved, which he believes would lead to a buoyant market, rising bond prices, and a more robust ruble.
“If the situation changes, perhaps I will be driven to pay more attention to bonds and the ruble,” Rogers mentioned. He further suggested that stocks in the Moscow Exchange and sectors related to travel and tourism could see significant gains once geopolitical tensions diminish.
Rogers attributed part of his positive outlook to the potential victory of Donald Trump in the upcoming US presidential election. Trump has committed to addressing the Ukraine conflict if he returns to the presidency, with his newly appointed special envoy for Russia and Ukraine, Keith Kellogg, recently expressing optimism for a resolution within 100 days after Trump’s inauguration on January 20. Rogers remarked that Trump “really wants” to resolve the situation but reminded that peace will necessitate negotiations with Moscow.
Moscow has expressed its willingness to engage in diplomatic efforts but insists that any settlement must include Ukrainian neutrality, demilitarization, and denazification. Additionally, Russia demands that Ukraine halt military actions and recognize the "territorial reality" of regions that have opted to join Russia.
Shifting focus to the broader economy, Rogers cautioned of a potential global recession by mid-spring, predicting it could be “the worst” of his lifetime. He attributed this bleak forecast to escalating national debt and the impact of Trump’s proposed import tariffs on Chinese goods, which he believes could severely disrupt global trade and the economy, drawing parallels to the Great Depression of the 1930s. He also predicted a weakening of the US dollar as a safe-haven currency could lead to a downturn in the global stock market.
For further insights on the economy and finance, visit RT's business section.
Jessica Kline for TROIB News
