US Hedge fund to Buy Securities in Russian Firms

Hours before his planned talks with the US President Donald Trump on a possible ceasefire in the war on Ukraine, Russian President Vladimir Putin has authorised a US hedge fund to purchase securities in Russian companies from 11 other funds according to a presidential decree published Monday.

The new decree permits 683 Capital Partners LP to buy Russian company securities from six U.S.-based, four U.K.-based and one Singaporean investment fund. These securities of Russian companies were owned by about a dozen Western asset-management and hedge funds. Franklin Advisers, Templeton Asset Management and Baillie Gifford Overseas were among funds that received the right to sell assets.

The decree follows Putin’s August 2022 order, which prohibits the US and other investors from countries deemed unfriendly by Russia from buying or selling securities in Russian companies in the energy, fuel and banking sectors without his personal approval.

In addition, the decree also authorised two Russian companies, Tsefey-2 and Sovremennye Fondy Nedvizhimosty, to buy 683 Capital’s securities without needing Putin’s approval. However, no further details were provided by the Russian Government.

683 Capital

The 683 Capital oversaw $1.95 billion of assets as of the end of 2023, split across a main fund and an offshore feeder fund, according to regulatory filings. The firm was founded in 2006 and is run by Ari Zweiman.

It may be recalled that Western exchanges suspended operations involving Russian securities in 2022, pushing trading into over-the-counter markets, following its invasion of Ukraine.

The Kremlin has confirmed that Putin and Trump were due to speak by phone on March 18 amid a US push for a 30-day ceasefire that Ukraine has already said it will accept. The US and Russian representatives have also begun engaging on some business projects, including in gas.

Meanwhile, speaking to reporters aboard Air Force One on Sunday, the US President said that he would talk about land and power plants with Putin and added that discussions about dividing up certain assets between Russia and Ukraine were already underway.