Russia’s isolation postponed

The global business is still ready to increase the investment in Russia. According to consulting company AT Kearney, more than a half of 500 affluent worldwide business representatives are planning to increase the investment in Russia «significantly or moderately» under the condition of recession of geopolitical intensity around Ukrainian events.

Despite the current situation, 50% of respondents still think, that Russia is the reasonable direction for investment. Some banks, including Coutts and DBS in Singapore, are noting that the shares of Russian companies are record-breaking cheap, and the ratio of price/profit is lower than dividend income indicators; this is a signal for purchasing of securities

According to the Foreign Direct Investment Confidence index (the trust index in the context of direct foreign investments), which is calculated by AT Kearney, Russia is out of TOP-25 directions for the investment for the second year in a row.

According to FDI Markets, in 2014 178 new projects, which are financed by foreign investment, were started in Russia for a total amount of 13 bln. USD. In 2011 the number of such projects amounted to 396, total value - about 23 bln. USD.

Further fall in prices of Russian assets, as expected, will increase the interest of Asian investors.

Moreover, the Russian business is also perked up, and reached much higher rates, than many global companies. And it is all because of sanctions and lack of foreign products, the Russians began to make a choice in favor of domestic products and services. Now, as a result, the Russian companies, which are trading at Moscow Exchange, are more profitable than all other companies from the index of developing markets according to MSCI by profit before tax values. Many Russian corporations surpassed its direct global competitors by growth level.