Goldman Sachs and JPMorgan Chase have begun offering ruble-linked derivative contracts to investors seeking exposure to Russian assets, according to sources familiar with the situation. These non-deliverable forward (NDF) contracts provide Western investors a legal way to profit from the ruble's performance while complying with current sanctions.

The Russian currency has surged approximately 20% this year, outperforming all other foreign exchanges globally. Financial experts now suggest part of this strength may come from an unexpected source: the very banks offering these derivative products. To manage risk on these NDF contracts, Goldman Sachs and JPMorgan must hedge their own positions by accessing actual rubles through intermediaries, likely based in Dubai or other Middle Eastern financial centers not bound by Western sanctions.

This hedging activity creates additional demand for the Russian currency, potentially explaining some of the ruble's recent strengthening that Russian monetary officials claim lacks clear fundamental drivers. The situation represents a significant shift from just a month ago, when these same banks reportedly told clients that rubles were unavailable and suggested Kazakhstan's tenge as a proxy for Russian market exposure.

"NDFs have been trading off and on, but the banks are certainly publishing quotes these days in a way that they hadn't been before," said Paul McNamara, portfolio manager at GAM UK Ltd. The derivative structure allows investors to gain exposure without physically handling Russian assets or involving Russian nationals.

Interest in Russian investments has grown following signals from the US administration about possibly easing sanctions on Moscow. The high interest rates on ruble assets make them particularly attractive for carry trade strategies, where investors borrow in low-interest currencies to invest in higher-yielding ones.

Beyond currency derivatives, brokers have approached investors offering:

• Ruble bonds from institutions like the European Bank for Reconstruction and Development
• Dollar and euro-denominated bonds from Russian companies like Gazprom and Lukoil
• OFZ (Russian government bonds) priced at approximately 40 kopeks per ruble for short-dated securities

The market improvement has already shown measurable effects. According to Bloomberg data, the amount of Russian corporate debt trading in distressed territory has dropped 13% since the beginning of 2025 to $35.3 billion - among the biggest declines recorded this year.

Some investment professionals remain cautious. Pavel Mamai, co-founder of hedge fund Promeritum Investment Management, warned that "People are massively over-estimating the upside for Russia-related assets." The complex nature of sanctions law presents challenges, as some US restrictions require Congressional approval before removal, while European sanctions may remain in place regardless of American policy changes.

The renewed interest in Russian assets comes as the Trump administration reportedly prepares to lift certain sanctions against Russia. According to recent reports, officials from the State Department and Treasury have been tasked with compiling a list of sanctions that could be removed soon. This initiative appears to be part of a larger foreign policy shift focused on preventing a Russia-China alliance while reducing American commitments to European security. Preparations for a Trump-Putin meeting have reportedly accelerated, with discussions planned to focus more on economic cooperation than on Ukraine. Any significant reduction in US sanctions would likely pressure European countries to follow suit, substantially changing the economic landscape that has shaped Russia-West relations since 2022.