In an interview with RBK news agency, Jim Rogers - a world-famous American investor, businessman and author, known as one of the legends of the financial industry - asserted that the resolution of the Russia-Ukraine conflict will stabilize the geopolitical situation, leading to a strong recovery of Russian bonds, the ruble and foreign investment flows.
"Many foreign investors are currently stuck because of the sanctions against Russia related to Ukraine and Moscow's countermeasures from the beginning of 2022. But when peace is established, the Russian market will change dramatically," Mr. Rogers commented.
Russia launched an asset swap program in March, allowing Russian and foreign investors to exchange securities frozen in the West for funds frozen in Russia. The first two rounds of the program have freed up about 10.64 billion rubles ($102 million).
However, Rogers said he did not participate in the program because he wanted to keep his Russian portfolio, which includes shares of the airline Aeroflot. "I am ready to buy more Aeroflot shares, shares of the Moscow Exchange (MOEX) and many other assets if there is real peace," he said.
While the Russian market is currently unsuitable for most foreign investors due to the risks associated with the conflict, Rogers believes that stability will bring a big boom. "Bond prices will rise, the ruble will strengthen, and sectors like tourism and stock trading will benefit greatly," he predicts.
Rogers also expressed optimism about the prospects for peace as US President-elect Donald Trump vowed to resolve the Ukraine conflict if he returns to the White House. Trump has pledged to promote Russia-Ukraine negotiations and hopes to reach an agreement in his first 100 days in office.
However, Rogers warned that to achieve real peace, the parties must be willing to negotiate. Russia has repeatedly said it is ready for dialogue, but with conditions including neutralizing Ukraine, demilitarizing it and recognizing the territories it annexed.
On the world economy, in the interview, Jim Rogers predicted a global recession by mid-spring this year, described as "the worst recession of his lifetime".
He attributed this to the growing national debt and President Donald Trump's potential import tariffs on Chinese goods, which he said could have a severe impact on global trade and the economy, likening the potential consequences to the Great Depression of the 1930s.
The US dollar will weaken, leading to a downturn in global stock markets, Mr Rogers added.
