Singapore as a new venue for Russian IPOs

WITH the implementation of a free trade pact with the Russia-led Eurasian Economic Union (EAEU) paving the way for greater business links between Singapore and EAEU markets - which comprises Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia - Singapore's capital markets could play host to a wave of initial public offerings (IPOs) by Russian firms.

The EAEUs' total gross domestic product (GDP) is estimated at US$1.9 trillion, and in terms of purchasing power parity (PPP) was estimated at US$5 trillion in 2018. The Russian economy, the sixth largest globally, is estimated at US$4.21 trillion on PPP terms.

Russia is also among the most resource-rich countries globally. A 2015 report for the European Parliament estimated Russia's subsoil wealth (oil, gas, coal and minerals) and other natural resources at US$75.7 trillion - which amounts to an immense opportunity for Asian investors.