Russian Financial Sector Update

Bank of Russia FINANCIAL SECTOR OVERVIEW The Central Bank of the Russian Federation 38 SECURITIES MARKET (7) Growing a deeper Russian bond market with strong potential Figure 37: Ageing fixed assets require long-term investments Accumulated depreciation as % of fixed assets Figure 38: Breakdown of bond issuers by industry, as of August 1, 2018 45.3 45.3 49.4 48.2 47.9 47.7 47.1 12% Banks and financial institutions 4% 27% Finance 48.1 47.7 5% 5% 6% Municipal Construction and development Transportation 2008 2009 2010 2011 2012 2013 2014 2015 2016 21% Utilities 20% Other Figure 39: Corporate loans vs corporate bonds in Russia (RUB tn) Figure 40: "Bondization" of Russian financial market Loans (incl. foreign debt) Corporate bonds (incl. eurobonds) Equities market trading volume, RUB trln Fixed income market trading volume, RUB trln 90.0 18 16.5 RUB 64.7 tn 15.3 75.0 15 60.0 27% RUB 29.2 tn 29% 12 9.2 45.0 23% 8.7 20% 9 19% 30.0 73% 71% 6 77% 15.0 81% 80% 3 2009 2011 2013 2015 2017 0 2013 2014 2015 2016 2017 Source: Thomson Reuters, Moscow Exchange

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