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Shares of companies linked to Russia have risen since Trump won the US election.
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Russia-linked stocks have struggled since the 2022 invasion of Ukraine.
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There is some optimism that Trump will help broker a deal to end the war.
Stocks linked to Russia have risen since Donald Trump won the US presidential election, as investors hope he will follow through on campaign rhetoric about ending the war in Ukraine.
Raiffeisen Bank International, an Austrian bank, has seen its share price rise 12.2% to a seven-month high since the market closed on Tuesday. Hungary-based OTP Bank rose 4.9% in that time. Both banks have activities in Russia. Turkey-based construction company Enka Insaat is up 8.6% since Tuesday.
Shares of companies with ties to Russia plunged after the 2022 invasion of Ukraine, as investors fled the country amid fears sanctions would hamper the economy and hurt companies doing business there.
After the invasion, the US and Europe applied widespread sanctions to cut off the Kremlin’s war revenues. These measures forced many companies to leave the country and made doing business difficult for those who remained.
The debt market has also reacted to Trump’s victory, with dollar-denominated Ukrainian bonds recovering since the election. On Wednesday, bonds linked to Ukraine’s GDP rose to their highest level since the start of the war.
Investors hope that Trump will follow through on promises he made during his campaign to end the war in Ukraine, which has been going on for nearly three years.
During his debate against Vice President Kamala Harris in September, Trump pledged to settle the war before he became president, saying he would speak to both Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin to reach a deal. In July he said he could end the conflict in less than a day.
Recent reports say Trump’s advisers have drawn up plans to end the war with approaches like a demilitarized zone between the two countries.
However, analysts have expressed concern that Putin has more to gain from prolonging the war than ending it, posing a challenge to all of Trump’s efforts to reach a deal.
In a post on
“I appreciate President Trump’s commitment to the ‘peace through strength’ approach to global affairs. This is precisely the principle that can practically bring a just peace in Ukraine closer,” Zelenskyy wrote.
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