A foreign investment fund bought around $800 million to $1 billion worth of Russian OFZ government bonds in the second quarter, three sources familiar with the situation said, without disclosing the name of the fund.
The deals took place outside the Finance Ministry's weekly OFZ auctions and at different times, one of the sources told Reuters, saying the fund had bought about 45 billion rubles ($810 million) worth of OFZs.
Another source said the fund had bought around $1 billion of the government bonds.
The bond purchases suggest high-yielding Russian assets remain attractive to certain overseas investors, despite Western sanctions over the Ukraine conflict and volatility in the Russian ruble, in which OFZs are denominated.
The ruble fell 40 percent to the U.S. dollar in 2014, and currently stands at 36 percent to the dollar since the start of last year.
The Finance Ministry declined to comment.
The ministry plans to borrow around 800 billion rubles ($14.4 billion) on the domestic market in 2015. It has so far this year sold around 355 billion rubles ($6.4 billion) via its weekly OFZ auctions.
Material from The Moscow Times was included in this report.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
