The Moscow Stock Exchange continues to break records despite sanctions on its most important companies, including banking giant Sberbank and the world’s largest natural gas exporter, Gazprom. But despite pretty lousy sentiment on all things Russia-related, the Moscow Russia Index is up over 100% in rubles in the last five years. It’s now at a record high.
“It’s actually amazing how well Russia has done given sanctions and sentiment,” says Chris Gaffney, president of world markets at TIAA Bank. “It makes you wonder what would happen if Russia had sanctions reprieve. I think the market would grow like a monster. And if you consider Trump possibly starting a trade war with Europe, then Europe may be the first to lift its sanctions on Russia in retaliation,” Gaffney says, thinking out loud on the possibilities for Russian securities should investor sentiment improve.