Ahead of planned ceasefire talks with the U.S. President Donald Trump, Russian President Vladimir Putin has authorized select Western asset managers and hedge funds to divest from Russian securities that had been frozen since the country’s 2022 invasion of Ukraine.
According to a Kremlin decree published on Monday, investment firms including Jane Street, GMO, and Franklin Templeton have been permitted to offload shares in Russian companies to 683 Capital Partners, a U.S.-based hedge fund. The decree further states that once the transfer is completed, 683 Capital Partners would be able to engage in transactions with two Russian investment funds without requiring additional authorization from the Kremlin.
683 Capital Partners, managed by Ari Zweiman, oversees $1.6 billion in assets, according to U.S. Securities and Exchange Commission filings. The firm has not yet responded to requests for comment regarding its role in the transaction. Similarly, Jane Street, GMO, and Franklin Templeton have not issued statements regarding their inclusion in the decree.
Putin’s decision marks a rare exception to the sweeping restrictions imposed on foreign investors in response to Western sanctions. Shortly after launching its full-scale invasion of Ukraine, Russia banned international investors from trading in shares and bonds of Russian banks and energy companies without explicit approval from the government. Since then, Western shareholders of major Russian firms such as Norilsk Nickel, VTB Bank, and Rosneft have largely written off their holdings as worthless due to these restrictions and the broader impact of sanctions.
The timing of the decree is noteworthy, coming just a day before Putin and Trump are expected to hold a phone conversation regarding a potential 30-day ceasefire in Ukraine. The U.S. and European governments have largely maintained strict financial sanctions on Russia, making it unclear whether the investors named in the decree obtained regulatory approval from their respective authorities before proceeding with the asset sales.
Despite ongoing sanctions, the Russian financial market has experienced a resurgence. The Russian rouble has appreciated by 36% against the U.S. dollar this year, and Russian stocks have rallied amid speculation that Washington may soon ease economic restrictions on Moscow. This latest development suggests that financial and diplomatic maneuvering around Russian investments continues to evolve as geopolitical negotiations unfold.
