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EU Turmoil Makes Russia the Sanctioned Market Traders Love

  • Nation’s debt cheaper to insure against default than Italy’s
  • Economic recovery, oil rebound brings haven allure to Russia
Two Russian Federation flags fly on a road leading to the Lenin mausoleum on Red Square in Moscow, Russia, on Thursday, Nov. 10, 2016. Russia is realistic about limits on the prospects for an immediate improvement in relations with the U.S. after President-elect Donald Trump takes office, according to President Vladimir Putin’s spokesman.
Photographer: Andrey Rudakov/Bloomberg
Updated on

The political turbulence roiling the European Union is making Russia look like a safe bet to bondholders.

For money managers wary of the elections looming in Europe, the worst relations with the West since the Cold War and sanctions on Russia’s biggest companies are no deterrent. The nation’s debt is cheaper to insure against default than Italy’s. A victory for populists in the Netherlands on March 15 could give anti-EU candidates a boost when voting is held in France, Germany and possibly Italy this year.