Asia (bbabo.net), - Kazakh brokers last year bought up Russian sovereign debt securities in favor of residents of Kazakhstan and Russia. It is reported by Bloomberg with reference to the data disclosed by the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market (ARRFR).
RRRFR found that six brokerage companies were involved in such operations, using both their own funds and clients' funds.
In total, from March to early December, Kazakhstani brokers carried out transactions in the amount of 641.1 billion ($1.4 billion) in Russian federal loan bonds (OFZ). Kazakhstani clients accounted for 48.7% of OFZ purchases, while Russian clients accounted for 41.4%. Also among the buyers of Russian government debt were residents of the United Arab Emirates (UAE) and Slovakia.
According to Bloomberg, Kazakh financial institutions are buying OFZs at a big discount. The transfer of bonds to the financial infrastructure of Kazakhstan allows you to receive coupon payments on them and payments on account of redemption of securities. Referring to the data of the Central Securities Depository of the republic, the agency indicates that in eight months the volume of sovereign Russian Eurobonds and OFZs in it increased 100 times.
According to analysts, the presence of Russians among the largest buyers of OFZs through the Kazakh financial infrastructure "underlines the ability of investors to withdraw capital from the country and use the cracks in the sanctions regime."
“A number of investors have found such a workaround in Kazakhstan, as the Central Asian countries maintain financial and trade ties with Russia, while avoiding Moscow's support in the conflict with Ukraine,” the agency notes.