The end of the Ukraine conflict will allow foreign investors to return to the market, the legendary investor says
Russia is headed for an economic boom once the Ukraine conflict is over, according to US investor and hedge fund manager Jim Rogers.
In an interview with RBK news outlet on Wednesday, Rogers said the resolution of the conflict would stabilize the geopolitical situation and positively impact Russian bonds, the ruble, and foreign investment.
Many non-Russian investors have seen their funds blocked due to Ukraine-related sanctions and Moscow’s countermeasures since early 2022.
In March, Russia launched an asset-swap scheme allowing Russian and foreign investors to exchange frozen Western securities for immobilized funds in Russia. Two rounds of the scheme freed some 10.64 billion rubles ($102 million) in foreign assets. However, Rogers, whose Russian portfolio includes shares in state airline Aeroflot, did not participate. He told RBK he wants to retain Russian assets and is looking forward to buying more as soon as non-residents get the opportunity to trade on the Russian market.
“I would be happy to buy more Aeroflot shares, I would be happy to buy Moscow Exchange shares, I would be happy to buy something if there is real peace,” he stated.
Rogers said the Russian market is currently unsuitable for most foreign investors due to conflict-related risks, including fears of asset confiscation. However, he predicted a drastic shift following a resolution, leading to a market boom, higher bond prices, and a stronger ruble.
“If the situation changes, perhaps I will be driven to pay more attention to bonds and the ruble,” Rogers said. He added that shares in the Moscow Exchange (MOEX) and stocks in travel and tourism could become significant beneficiaries once geopolitical tensions ease.
Rogers also linked his optimistic outlook to Donald Trump’s US presidential election victory. Trump has pledged to resolve the Ukraine conflict upon returning to the White House, and his incoming special envoy for Russia and Ukraine, Keith Kellogg, recently expressed hopes for a resolution within 100 days of Trump’s inauguration on January 20. Rogers noted that Trump “really wants” to resolve the situation but cautioned that achieving peace will require negotiations with Moscow.
Russia has reiterated its openness to diplomacy while insisting that Ukrainian neutrality, demilitarization, and denazification must be part of any settlement. Moscow has also demanded that Ukraine cease military operations and acknowledge the “territorial reality” of its former regions that chose to join Russia.
Regarding the world economy, Rogers warned of a looming global recession by mid-spring, predicting that it would be “the worst” in his life. He attributed this to growing national debt and Trump’s potential import tariffs on Chinese goods, which he said could severely impact global trade and the economy, likening the potential fallout to the Great Depression of the 1930s. He added that the US dollar would weaken as a safe-haven currency, leading to a downturn in the global stock market.
