Russian Market's Paradox: MOEX Rallies Despite Western Exit and 21% Interest Rates

Russia's equity market shows surprising resilience as the MOEX index reaches 2,924 points, up 1.42% in early 2025, despite unprecedented Western sanctions. While 90% of foreign companies remain partially invested in Russia, they face strict regulations including mandatory 50% discounts on asset sales and 10% state contributions. The Russian Direct Investment Fund projects significant foreign investment growth in 2025, particularly from Global South nations, even as Western investors navigate complex exit barriers and potential asset nationalization risks.
Source: Trading Economics, Russian Direct Investment Fund