Russian stocks are worth a punt

There are plenty of problems facing Russia. But now could be the time to buy in.

The crisis in Ukraine has dealt Russian assets a sharp blow. The stock market fell by a fifth in the first four months of 2014 as over $60bn fledthe country; the rouble is down by almost 10% this year.Yet Russia "appears to hold strong economic as well as military cards", says The Economist.

Because it supplies 24% of the EU's gas and 30% of its oil, it's "hard for the West to design sanctions that do not backfire". Russia's relatively healthy balance sheet suggests it can ride out a period of capital outflows. It has a current account surplus of around 2.1% of GDP.

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Andrew Van Sickle
Editor, MoneyWeek

Andrew is the editor of MoneyWeek magazine. He grew up in Vienna and studied at the University of St Andrews, where he gained a first-class MA in geography & international relations.

After graduating he began to contribute to the foreign page of The Week and soon afterwards joined MoneyWeek at its inception in October 2000. He helped Merryn Somerset Webb establish it as Britain’s best-selling financial magazine, contributing to every section of the publication and specialising in macroeconomics and stockmarkets, before going part-time.

His freelance projects have included a 2009 relaunch of The Pharma Letter, where he covered corporate news and political developments in the German pharmaceuticals market for two years, and a multiyear stint as deputy editor of the Barclays account at Redwood, a marketing agency.

Andrew has been editing MoneyWeek since 2018, and continues to specialise in investment and news in German-speaking countries owing to his fluent command of the language.