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Stabilization of inflation processes in Russia attracts foreign investors — ACRA chief

The Russian economy has already managed to adapt to Western sanctions, the CEO of the Russian Analytical Credit Rating Agency says

LONDON, February 1. /TASS/. Stabilization of inflation processes in Russia and the high level of credit quality of Russian borrowers attracts foreign investors to the country, Chief Executive Officer of the Russian Analytical Credit Rating Agency (ACRA) Ekaterina Trofimova told TASS on Thursday.

"I would highlight the change in the situation with inflation and the stable transition of real interest rates to the positive zone for the first time in the current history of Russian financial market as the main reason of interest appearing among foreign investors. The situation when interest rates are above current and forecast inflation is highly attractive from the financial standpoint. From this viewpoint, the level of real interest rates in Russia is one of the highest across the globe with the highest stability levels of the credit quality of Russia borrowers," Trofimova said.

"A huge deficit of high quality and high-return assets exists in the global financial system, especially adjusted by inflation, and Russian assets represent high interest, which is certainly restricted by uncertainty with sanctions. We see until now that approximately a third of investments, particularly into the Russian federal loan (OFZ) bonds are real foreign funds," she noted.

The Russian economy has already managed to adapt to Western sanctions and their impact on it will be minimal over the longer term, the expert added.