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Fasdal: The worst is over for Russia and here's why

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Saxo's Simon Fasdal believes the worst is over for Russia. The rouble is beginning to stabilise and could possibly strengthen, he says. Although the oil price has hit Russia hard, Simon believes that even a small price increase would help the economy.

The high level of inflation that has plagued the country could also have peaked. Fasdal is hopeful that GDP could also pick up in the coming months.

The geopolitical landscape is changing and Simon thinks Russia could benefit. If the chaos in the Middle East leads to more talks between Vladimir Putin and the West, the withdrawal of sanctions could be on the cards, which would greatly help the Russian economy. 

Both equity and bond markets priced in roubles have stabilised, Simon says and if that continues Russian assets will look more attractive. He also discusses equity ETFs, rouble denominated government bonds as well as Russian corporate bonds priced in US dollars.