The Russian economy is completing a steady recovery from recession and its government bonds are attracting investors reluctant to invest in an increasingly unstable Eurozone.

Russian government debt is becoming a safe haven for investors amid economic and political uncertainty in Europe.

The increasing popularity of the bonds has seen yields fall in recent months. According to data from Trading Economics, the yield on ten-year Russian government bonds dipped below eight percent on Thursday, their lowest yield since February 2014.

In May of last year, the Russian Finance Ministry placed $1.75 billion of 10-year Eurobonds at an annual yield of 4.75 percent. Investors snapped up the bonds despite doubts about whether major clearing centers would admit the bonds for settlement due to confusion over sanctions.

Euroclear Bank eventually started to accept the Eurobonds in August and since then their yield has declined to 4.26 percent, according to CBonds.

Russia's relatively low sovereign debt to GDP ratio, at around 15 percent, and large gold and foreign currency reserves, have enabled Moscow to retain the interest of investors despite attempts to isolate Russia from the financial markets with sanctions.

Russian debt is seen as a relatively safe haven for investors in comparison with that of other Eurozone members like Portugal and Greece. According to German newspaper Die Welt, analysts believe there is a 19 percent likelihood of Portugal defaulting on its debt and a 50 percent chance that Greece will do so.

Credit rating agencies have upgraded their outlook on Russian sovereign debt in recent months. In November, Fitch Ratings raised Russia's credit outlook rating to "stable" from "negative" and reaffirmed its foreign currency credit rating at BBB-, the lowest investment grade level.

On Friday, Standard and Poor's upgraded Russia's credit outlook rating to "positive" from "stable" and reaffirmed its foreign currency credit rating at an investment-grade BB+/B.

"We expect GDP growth in Russia will pick up, averaging about 1.7% in 2017-2020, and we see a lower risk of large capital outflows, therefore moderating external pressures," Standard and Poor's stated.