Putin's Green Light to U.S. Hedge Fund Shakes Up Russian Securities Market

Russian President Putin authorizes a U.S. hedge fund to buy and sell securities in Russian firms, impacting sanctions amid tension over Ukraine. The move suggests potential changes in U.S.-Russia investment ties following Trump's political resurgence, but leaves many questions unanswered.

In a surprising move, President Vladimir Putin has permitted a U.S. hedge fund to partake in the Russian securities market. A presidential decree issued on Monday enables 683 Capital Partners to purchase and resell securities from Russian firms, bypassing some of the country's stringent sanctions.

Moscow has imposed tight controls on foreign asset sales since the Ukrainian conflict began. Deals in the energy and finance sectors specifically require Putin's endorsement. Investors are observing the situation closely, hoping that Trump's return to power might ease investment restrictions, although the recent decree offers scant details.

The decree lists Western financial entities, such as Jane Street and Franklin Advisers, whose securities can now transition to Russian hands via 683 Capital Partners, with two Russian funds, Cepheus-2 and Modern Real Estate Funds, given acquisition rights without Putin's further approval. Attempts to reach 683 Capital for comments were unsuccessful.

(With inputs from agencies.)