Heatmap: Structure of Russian Exports (Research Affiliates)
The following heatmap from Research Affiliates shows that close to 70% of Russian exports are energy related but its also important to remember that many countries (and most notably Germany) rely heavily on Russian energy imports. Moreover, it will take decades of infrastructure investment to lower Europe’s dependence on Russian energy while Russia needs foreign capital and foreign technology to improve its overall economic efficiency as well as its ability to produce commodities like energy. Hence, Germany and other countries oppose outright trade restrictions or strong Russia sanctions over the Crimea and Ukraine issues.
On the other hand, other countries that are heavily dependent on oil export revenues like Norway and the United Arab Emirates are not experiencing Russia’s level of inflation, currency turmoil and stock market instability.
To read the whole article, The Wild, Wild East: Risks and Opportunities in Russia, go to the website of Research Affiliates. In addition, also have a list of Russia ADRs here and Russia closed-end funds here.
- Graph: The Structure of Russia’s Foreign Debt (Research Affiliates)
- Coutts CIO: Russian Stocks Now Appear Attractive (FE Trustnet)
- Infographic: Russia’s Sphere of Influence in Context (VOX)
- FATCA Fallout: Russia’s #2 Bank VTB to Stop Servicing Russia-Based US Clients (MT)
- Russia Consumer Confidence Falls in Latest Nielsen Survey
- State Street Global Advisors’ CIO: Russia Stocks Could See Further Selloffs (FE Trustnet)
- Jupiter’s Croft: If History Repeats Itself, Russian Stocks Could Double (FE Trustnet)
- Gazprombank GPB Hires Former Senators Lott and Breaux to Fight Russia Sanctions (CPI)
- Russia’s Path to Credit Strength Amid Biting Sanctions (PGIM Fixed Income)
- Russian Equities are at “Too Big a Discount” (CNBC)