Investing in Russia is so crazy, it just might work, a January 2015 paper from Bloomberg said. The ongoing crisis in Ukraine, the negative impact of western sanctions and the growing tension in politics with the killing of opposition figure Boris Nemtsov are three main reasons for anyone to flee the Russian market. Falling prices in raw materials, including natural gas and oil, have downgraded the Russian economy to “junk” according to two of the three most important ratings agencies. Despite such difficult context, this is a place full of opportunities, according to business adventurers.
For emerging-markets investors like Mark Mobius at Franklin Templeton, fear means opportunity. “Even in Russia, every time the political environment changes, you can make a hell of a lot of money buying in at a low price,” Mobius told March 2015’s edition of Fortune. “We’re not talking about a huge risk at this point because (…) investment (in Russia) two and three years from now I feel is going to be that much better than it is today,” Tom Lydon, President of Global Trends Investments, told CNBC in December 2014. For more fearful – or prudent – investors, best moment to invest in Russia could be when there’s a confirmed bullish turnaround of oil prices, currently stabilizing around $49-50 per barrel for the WTI.
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