Russian assets undervalued, demand outstrips availability – Gazprombank

17 Jun, 2016 09:33 / Updated 9 years ago

One of the largest Russian state banks, Gazprombank, has spotted a growing interest of foreign investors in Russian assets, according to Deputy Chief Executive Oleg Vaksman. Investors want to buy Russian stocks and bonds, but not enough is available.

Vaksman has also seen that investors are now more prone to buy Russian stocks and bonds through subsidiaries of Russian banks rather than foreign banks.

“There is an interesting trend. Our clients that have money abroad and foreign investors are now more likely to buy Russian stocks and bonds through Russian banks’ foreign branches. They used to do it through a Swiss or English bank, and this is a positive new trend,” Vaksman told RT.

Speaking about the Russian banking sector, he said clients still prefer deposits. Wealthy clients keep 65 percent of their savings in foreign currencies (dollar, euro, pounds, etc.), while the rest are ruble deposits, Vaksman said. But the trend of actively selling of ruble has stopped, he said.

The Gazprombank Deputy Chief Executive also said the tough economic conditions have made Russian companies more effective in assessing risks and taking loans. The agricultural and petrochemical sectors are the biggest borrowers now, Vaksman added.

Founded by the world's largest gas producer and exporter Gazprom in 1990, Gazprombank provides services for over 45,000 corporate and about four million private clients.