Russia will become the biggest issuer of sovereign debt in emerging markets during the next decade as its aging society pushes up pension costs, exceeding revenue from oil, Bank of America Merrill Lynch said in an note as part of its predictions for the next 10 years.

Russia will remain reliant on revenue from oil as it will have “limited success in investing the oil windfall,” the bank said. The country will also have another “bust” during the decade ahead and will also increase taxes on income to pay for pensions, it said. 

(Bloomberg)