Goldman Sachs Sees Risks for Russia in Ukraine Bond Investment
This article is for subscribers only.
Russia’s plans to spend $15 billion of its oil wealth buying Ukrainian bonds is a risky bet that is “becoming a concern of investors,” according to Clemens Grafe, Goldman Sachs Group Inc.’s chief economist in Russia.
Russia yesterday committed $15 billion, primarily from its $88 billion National Welfare Fund, to buy Ukrainian bonds as part of an aid package for its former Soviet neighbor. The sovereign vehicle is a rainy-day fund built up to stabilize retirement provisions.