The recent US elections gave victory to Donald Trump. How the return of the politician will affect Russian companies – in the RB.RU material.

“The news is quite positive”: experts assessed the impact of Trump’s victory on Russian companies
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With Trump coming to power, foreign funds will become bolder in investing in Russian startups and, in turn, will find it easier to enter foreign markets. And although it is too early to expect a complete lifting of sanctions, the weakening of the regime could be an advantage for the venture business, according to experts interviewed by RB.RU. At the same time, Trump’s arrival will affect business within Russia much less than the increase in the key rate of the Central Bank of the Russian Federation. Experts do not rule out a drop in oil prices and a strengthening of the American industry due to the policies of the 47th president of the United States, which will reduce the flow of money into the Russian economy.

General Director of the Voskhod Foundation Sergey Amiryan sees two potential scenarios for the development of events: “conditionally positive” and “negative.”

According to the first scenario, Trump’s policies will lead to a partial lifting of sanctions, mainly in the financial sector and on cross-border transactions.

“This will facilitate transactions for companies, including technology companies, that export and handle cross-border payments. This scenario will increase the flow of money into the economy, which is good for both investors, funds that manage money and for companies that will be able to attract money,” Amiryan said.

The second, negative scenario is associated with Trump’s plans to lift all restrictions that have traditionally been introduced and are being introduced under the Democrats’ mandate on oil production within the United States and its supply to foreign markets.

“This could lead to a drop in oil prices and, as a result, reduce the flow of money into the Russian economy. Investors will have less money and fewer opportunities for companies to attract investments,” Amiryan clarified.

As stated by RB.RU CEO of risk platform Dsight Sergey KantserovA rapid de-escalation of the conflict in Ukraine and attention to the US domestic economy were among future President Donald Trump’s key electoral slogans.

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“Will this accelerate the process of lifting sanctions on Russia? In fact, this can happen in 2 or 3 years. In addition, this will open up the potential of the Russian market. Foreign funds will become bolder in investing in Russian startups and these, in turn, will be able to travel abroad. In a certain sense, this news is quite positive for the Russian risk market,” said the expert.

The US president already has legal tools to lift sanctions against Russia, according to RB.RU Managing partner of Kostromin’s ContractCreation legal boutique Evgeniy Kostromin.

“First, Trump will need to repeal Executive Order No. 14024 of 2021 (which blocks properties in connection with the Russian government’s specified dangerous foreign activities). In compliance with this decree, dozens of other regulatory laws have been adopted, but the abolition of this particular decree is a priority task, this step will allow the persons included in it to get off the sanctions list,” Kostromin said.

But while the sanctions policy and the blocking of Russian assets give Western countries a profitable financial result, one should not expect a rapid and significant change in the vector of the US sanctions policy, the expert believes. According to him, the US sanctions policy and the candidates’ statements during the electoral race are obviously different things and, in addition to the legal aspect of the issue, it is important to take into account the political component.

“I think it is more reasonable to expect a suspension of the escalation of the sanctions regime than its relaxation,” Kostromin concluded.

Founder of the investment company in the field of artificial intelligence SharesPro Denis Astafiev believes that after Trump’s victory the pressure of sanctions is likely to decrease, but at the same time American industry will be strengthened, which can also be felt by Russian companies.

“The expected easing of economic restrictions is also supporting the growth of Russian stocks, although companies that previously benefited from sanctions may face a reassessment of their positions,” Astafiev says.

Founder of the Baden family group of companies and the chain of Russian thermal centers “Baden-Baden” Evgeniy Kononov He said he welcomed the absence of anyone influencing Russian affairs from the U.S. election. After the introduction of sanctions, domestic tourism began to actively develop in the country, which was beneficial for the businessman.

“The President of the Russian Federation gave a clear vector for the development of domestic tourism. Tourism infrastructure is developing along with domestic travel culture. And this is a trend for at least the next 10 years. No matter who is elected president in the United States, tourism in Russia will develop by leaps and bounds. We have a lot of work ahead of us and launches of new locations,” said the expert.

Founder of the investment company Banana Capital Fund Dinar Faskhutdinov He says Trump’s rise to power is creating a favorable atmosphere for investing in high technology and cryptocurrencies. The US president’s free market approach could encourage Russians to invest in crypto assets. On the other hand, the problems of the Russian stock market will persist.

“The high interest rate of the Central Bank of the Russian Federation (21% – editor’s note) naturally causes an outflow of capital. The dividend yield from stocks for the Russian investor is currently less attractive than other alternatives – money market funds and deposits. The rhetoric of Russian monetary policy does not depend on who rules in the White House. This means that the Russian economy, with the arrival of Trump, will not begin to feel the high interest rate in any other way,” the expert concluded.

I agree that the US elections will not affect business within Russia. founder of the international consulting company Bespalov Finance Alexander Bespalov.

“We fully understand that sanctions will not be lifted in the near future, under any circumstances. Trump’s global return will not lead to a renewal of the excellent relations between the United States and Russia. Commercial turnover between countries is now almost zero. “It is also not likely that this will change immediately,” considers the expert.

According to Bespalov, the countries are geopolitical opponents and will remain so, which means that Trump’s coming to power will not affect business within Russia.

However, there are also those who have already benefited from Trump’s victory, the expert added. Bespalov knows that the Russians have brokerage accounts with Tesla securities, and the company’s shares rose 15% on the news of Trump’s victory, which investors managed to take advantage of.

Cover photo: Chip Somodevilla/Getty Images

Author:

Ekaterina Strukova

Source: RB

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I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.

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