Russia is back in the market – or is it? After four months of inactivity in the Russian Eurobond market, Alfa Bank and Sberbank broke the drought in June 2014, and the Russian equity market rebounded from the 26% slump in prices in the first quarter of 2014, but recent events have once again cast a shadow of doubt over the market.
First, on July 16, a fresh round of sanctions were imposed on Russia by the US. Then, the following day, a Malaysian Airlines airplane was brought down over a disputed region in eastern Ukraine, killing all 298 on board, raising tensions between pro-Russian separatists and the Ukrainian authorities, and leading to calls for further sanctions on Russia.
