Russian government leads toward centralized and perhaps planned economy. Since recently companies like OboronProm, Rostechnology and others forcefully concentrated many smaller companies under their umbrellas. What are the pros and cons? To be discussed…

I like the latest news from Moscow on tax breaks for the oil industry, what it means for the present and what it could mean for the future. The Russian oil industry faces a decline in production this year for the first time in many years. This is happening as productive fields start their decline and many of the new fields are in areas making them expensive to explore and produce. The government has recognized this crisis and has granted the first of what we hope will be several tax breaks to the industry to encourage production.

For our international investors looking to possibly purchase fixed income here in the near future, we suggest putting that off, if only just for a little bit. Russian central bank officials are raising their inflation estimate for this year and have suggested raising interest rates soon. If this happens, rates for fixed income will surely go up and be even more attractive.

For our international investors looking to possibly purchase fixed income here in the near future, we suggest putting that off, if only just for a little bit. Russian central bank officials are raising their inflation estimate for this year and have suggested raising interest rates soon. If this happens, rates for fixed income will surely go up and be even more attractive.

Russia’s admission to the WTO took several small steps forward recently. Internally, government departments are reviewing the needed steps Russia must accomplish to be in compliance with WTO rules. Externally, foreign countries from around the world, including the EU and the U.S. have expressed their support for Russia joining the organization, so it appears it is now just a matter of time. Domestically, a major French supermarket chain has announced major expansion plans for Russia. As more retailers enter the scene we’ll see if prices for the consumer will moderate somewhat in the long-term.

There are hopes the new administration will begin to address the need for more exploration in Russia as known reserves of natural gas and oil are depleted. High taxes provided a disincentive to replace reserves but there are plans in the works to resolve this situation. There are specific Russian companies we have identified in the exploration, equipment, and energy infrastructure fields who stand to benefit from this paradigm shift.