Investing in the Russian economy
The Russian economy offers a wide range of opportunities for foreign investors willing to consider local specifics and long-term trends.
Contents
Investment instruments available to investors
Shares. These securities give the holder a stake in a company. Investors can profit from rising or falling share prices, as well as from dividends. Shares in Russian companies can be bought and sold through a broker.
Bonds. These are debt securities that offer regular interest payments and repayment of the principal amount at maturity. Bonds are issued by the government, banks, or corporations. Investors earn through price fluctuations and coupon payments. Bonds can be purchased on the stock exchange through a broker.
Trust units. Investor (unit holder) funds are pooled into a portfolio of assets (such as shares, bonds, precious metals, or real estate) and placed under professional trust management. Investors earn returns from the increase in the unit’s value.
Investment in precious metals. You can invest by purchasing bullion bars, coins, shares of gold mining companies, or by buying into a fund that tracks precious metal prices on the stock exchange. Gold has always been considered a stable instrument, and its price has been rising—partly due to major purchases by central banks around the world. From 2022 to 2024, these banks purchased approximately 3,200 tonnes of gold (according to reports by the World Gold Council).
In addition to gold, Russian banks also offer silver, palladium, and platinum bullion bars for purchase.
Read this article to learn more about the key trends driving Russia’s economic development.
Russia’s stock exchanges
Moscow Exchange (MOEX). This is where securities of both Russian and overseas companies are traded. It ranks among the world’s top 20 exchanges and calculates Russia’s key stock indices: the Moscow Exchange Index (IMOEX) in roubles and the RTS Index (RTSI) in US dollars. Both indices are capitalisation-weighted and take into account the free float—the portion of shares available for public trading. There are more specialised and sector-specific indices, such as the Blue-Chip Index (MOEXBC)—which includes the 15 most liquid and capitalised issuers—and the Mid and Small Cap Index (MCXSM).
SPB Exchange (formerly St. Petersburg Exchange, SPBE). This specialises in facilitating the trading of overseas securities in Russia. It is now focusing on Russian company IPOs, including of regional industrial enterprises.
Eastern Exchange (Valentin V. Nikolayev Eastern Exchange JSC). Originally established as a commodities exchange, this is now developing a platform for trading financial instruments. Sibur, one of the world’s largest petrochemical holdings, is planning to launch its IPO here.
How to start investing
Study the legislation, either independently or with the help of consultants. In Russia, foreign investment is regulated by Federal Law No. 160-FZ “On Foreign Investments in the Russian Federation”. It is important to familiarise yourself with the rules and restrictions applicable to investment assets.
Russia’s authorities and financial institutions are keen to attract new foreign investors to the market and are laying the groundwork to facilitate this. The Ministry of Finance and the Central Bank have developed a system of guarantees for new overseas investors, primarily to ensure the smooth cross-border transfer of funds.
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Choose a broker or asset management company. They must hold a licence from the Bank of Russia and have experience in the financial market.
Open an investment account with a Russian bank. To do this, you must go through an identity verification process. Indian citizens can complete the process remotely through an Indian bank acting as an intermediary for a Russian financial institution. Their documents (passport, bank account details, tax registration certificate, etc.) must be accompanied by a certified translation into Russian and verified at an Indian diplomatic mission. The results of the verification process are then submitted by the intermediary to its Russian partner for final approval.
At present, non-residents can open a rupee account with a Russian bank for free and conduct transactions with their business partners, receiving and sending payments between Russia and India.
Start investing. Transactions are carried out online via a broker’s website or mobile app. The intermediary charges a commission for its services and is obliged to inform the investor of any additional costs before accepting a transaction for execution.