Asian firms warned against underestimating Russian exposure

Analysts have warned Asian companies not to underestimate their exposure to the Ukraine crisis as Russia has invested heavily in bonds in the region. It is estimated that Russian authorities own a combined USD140bn of Chinese bonds. The Kremlin has now banned coupon payments to foreigners. Steve Vickers, chief executive at risk advisory firm Steve Vickers and Associates, suggested that management should review existing customers and partners to determine if they pose a serious threat, as many countries are excluding Russian companies from international payment systems due to sanctions. Australia & New Zealand Banking Group said the Bank of Russia could hold USD80bn of yuan debt, while Russia’s National Wealth Fund is estimated to own USD60bn. Together, that represents almost a quarter of foreign ownership in China's domestic bond market.