020 7189 9999
Opening hours
Mon - Fri: 7.45am to 6pm (Thurs 8pm)
Sat: 9.30am - 1.30pm
Request a call back
  • Home
  • News
  • Russia a crisis of investor confidence

Russia: a crisis of investor confidence

Recent events around the Crimea have compounded the lingering investor confidence and exposed the economic weakness of the Russian growth model. Business and consumer sentiment in Russia remain weak. In 2013, feeble domestic demand dragged the Russian economy close to stagnation.

When major infrastructure projects came to an end in early 2013, the spare capacity was immediately felt in the economy. Then the expectation that private investors would start investing more during the second half of 2013 did not materialise. The lack of growth to support structural reforms and decreasing profit margins weighed heavily on business sentiment and pushed down industrial activity and investment.

Currently very high risks for investors in Russia remain. Whether equity prices have hit the bottom, or investors would demand even higher potential return before re-entering the market, remains to be seen. Nevertheless, if the situation unfolds faster than currently expected, longer-term investor rewards could be high.

So with Russia remaining “a riddle wrapped in a mystery inside an enigma”, as Winston Churchill famously put it, read senior research analyst Victoria Chernykh’s in-depth analysis of the country’s current economic and investment climate.

Read now

The value of your investment can go down as well as up, and you can get back less than you originally invested.

The Bestinvest Online Investment Service, including any account analysis and investment reports provided by our guidance services, is an online execution-only dealing service for investors who want to make their own investment decisions. It does not provide advice on the suitability of products and investments; if you are unsure about the suitability of any investment you should seek professional advice. Clients of our Investment Advisory Service and Managed Portfolio Service can use the website to obtain current valuations of their investments but cannot trade on these accounts online and should call their adviser if they wish to discuss changes to their investments.

Past performance or any yields quoted should not be considered reliable indicators of future returns. Restricted advice can be provided as part of other services offered by Bestinvest, upon request and on a fee basis. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Issued by Bestinvest (Brokers) Limited (Reg. No. 2830297), which is authorised and regulated by the Financial Conduct Authority. Financial services are provided by Bestinvest (Brokers) Limited and other companies in the Tilney Bestinvest Group, further details of which are available here. This site is for UK investors only.
© Tilney Bestinvest Group Ltd 2016.

Version: RC1027.44113