Putin's decree authorizes US hedge funds to purchase foreign-owned Russian securities

A presidential decree published on Monday showed that Russian President Vladimir Putin had given permission to a U.S.-based hedge fund to purchase securities in Russian firms from certain foreign investors and to sell them to two Russian funds.

Since the beginning of the Ukraine conflict, Moscow has tightened its restrictions on the sale of foreign assets. Any transactions in the energy or finance sector require Putin's approval.

Investors are looking for signs that the thaw of U.S.-Russian relations, sparked by the return of President Donald Trump to the White House, could open up new ways for Westerners to trade Russian assets. The Monday decree was light on details and provided few clues.

The decree authorized the U.S. hedge-fund 683 Capital Partners, LP to purchase securities from Russian companies that were owned by a dozen Western financial entities including Jane Street Asset Management, Franklin Advisers, Carrhae Capital, Templeton Asset Management and Templeton Asset Management.

Two Russian companies, Cepheus-2 Fund and Modern Real Estate Funds were then granted permission to purchase securities from 683 Capital Partners, without needing additional approval from Putin.

We were unable to reach 683 Capital Partners immediately for comment.

The international sanctions imposed on Moscow in response to the war in Ukraine have prevented many Russians from accessing securities located outside of the country. Meanwhile, Russian countermeasures frozen Western funds inside the country.

(source: Reuters)