Rusal Stock Trading Surges 15-Fold on Bets of Russia Reopening

(Bloomberg) -- One of the few Russian companies left on any of the world’s major exchanges saw a more than 15-fold surge in trading activity this week as speculators bet US President Donald Trump will try to ease sanctions.

An average of 4.2 million shares of United Co. Rusal International PJSC changed hands in Hong Kong this week, compared with about 250,000 in January. While the stock has few shares that trade and volume is very thin, it still shows how investors are looking for ways to make a buck from the rapid thawing of Russia and US relations.

“Trump looks hell bent on getting back in business with Russia,” said Kamil Dimmich, partner at North of South Capital, a London-based emerging market equity manager. He added that his firm does not buy Russian stocks.

The share price is up almost 50% this month and trades at levels last seen in April 2022, about a month after Russia invaded Ukraine. While Rusal isn’t sanctioned, Russian companies have been shut out of international capital markets since the invasion three years ago and mainstream fund mangers are cautious about holding Russian assets.

In an interview with Bloomberg on Thursday, Treasury Secretary Scott Bessent said the US is prepared to either ramp up or take down penalties based on the Kremlin’s willingness to negotiate.

Rusal faces a slew of restrictions.

The US has 200% tariffs on Russian aluminum imports, while the European Union is moving toward gradually blocking Russian metal imports entirely. The London Metal Exchange no longer accepts newly produced Russian metal for its warehouses. And even if the US eases its ban, Trump ordered a general 25% tariff on aluminum imports in February. The EU and the UK, meanwhile, aren’t showing signs of lifting their restrictions.

The majority of Russian companies no longer trade outside Russia, following sanctions and Kremlin restrictions.

Several, like agricultural firm Ros Agro, and online retailer Ozon, have listed depository receipts in Kazakhstan, a long-time ally that the Kremlin categorizes as a “friendly nation.”