Euro gains seen to be Russian bonds' Achilles heel

Moscow

SANCTIONS from the US have taken a toll on Russia's local debt, but a bigger threat may lurk much closer to home.

While tougher US penalties, first announced in June, put the breaks on gains in rouble bonds, the Russian central bank's monetary easing is still luring investors to the debt, which is on track to deliver an 11 per cent return in US dollar terms this year.