Russia's rigged election won’t rattle investors
Russian stocks are soaring, despite last week’s blatantly rigged election.

“The appeal of Russian markets is eclipsing risks from president Vladimir Putin’s crackdown on political rivals,” says Jake Rudnitsky on Bloomberg. Stocks are soaring, buoyed by “the central bank’s drive to curb inflation, a conservative fiscal policy, rebounding commodity prices and the easing threat of US sanctions”. GDP should grow 3.9% this year. “With so many reasons to be bullish, investors are looking past the political situation.”
Last week’s blatantly rigged election won’t change that. The Kremlin jailed or barred many opposition candidates and used a range of dirty tricks to see off others – yet when the polls closed “it fleetingly appeared as if [its party] United Russia … might be in for a tough time”, says Felix Light in the New Statesman. Then “after a mysterious 14-hour delay, the two million votes cast as part of an online voting trial scheme were added to those cast at traditional polling stations”. United Russia “which had been polling at under 30% for months, wound up with half of all votes cast and a two-thirds parliamentary supermajority”.
Yet in the long term, the Kremlin’s “social manipulation” will spawn “a crisis of human capital”, says Andrei Kolesnikov in the Financial Times. That bodes ill for an economy that can’t rely on oil and gas forever. “What Putin and his inner circle are relying on is that there will be enough political and economic heft for the rest of their time in power. What happens after that… is of little concern to them.”
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Cris Sholto Heaton is an investment analyst and writer who has been contributing to MoneyWeek since 2006 and was managing editor of the magazine between 2016 and 2018. He is especially interested in international investing, believing many investors still focus too much on their home markets and that it pays to take advantage of all the opportunities the world offers. He often writes about Asian equities, international income and global asset allocation.
Cris began his career in financial services consultancy at PwC and Lane Clark & Peacock, before an abrupt change of direction into oil, gas and energy at Petroleum Economist and Platts and subsequently into investment research and writing. In addition to his articles for MoneyWeek, he also works with a number of asset managers, consultancies and financial information providers.
He holds the Chartered Financial Analyst designation and the Investment Management Certificate, as well as degrees in finance and mathematics. He has also studied acting, film-making and photography, and strongly suspects that an awareness of what makes a compelling story is just as important for understanding markets as any amount of qualifications.
-
Equity release rates drop – is it worth unlocking cash from your home?
News Lifetime mortgage rates are falling from their record highs - is equity release worth another look?
By Marc Shoffman Published
-
Hargreaves Lansdown launches fixed-term cash ISA product
savings/hargreaves-lansdown-fixed-cash-isa-launch Investment platform Hargreaves Lansdown is to offer fixed term cash ISAs via its Active Savings platform paying 4.8%, tax free - but is it any good?
By Kalpana Fitzpatrick Published
-
The fallout from the war on landlords
Investors fleeing the market and the rise in rents are affecting us all.
By Charlie Ellingworth Published
-
Eight small-cap trusts to bet on
Funds investing in market minnows are out of favour, but the cycle will turn. Here are the best bets.
By Max King Published
-
Trust in US TIPS to beat inflation
In an inflationary market TIPS, the US Treasury Inflation-Protected Securities are most compelling says Cris Sholto Heaton.
By Cris Sholto Heaton Published
-
What is Vix – the fear index?
What is Vix? We explain how the fear index could guide your investment decisions.
By Dr Matthew Partridge Published
-
Time to invest in the next agricultural revolution
As the global demand for food increases, food producers are seeking to lower their carbon emissions. Technology will help meet both goals.
By Dr Matthew Partridge Published
-
Asia’s hidden gems: Three undervalued Asian stocks
Personal View Fidelity's Nitin Bajaj highlights three favourite Asian stocks.
By Nitin Bajaj Published
-
Uber's switch to profitability is an opportunity for investors
The ride-hailing platform has just reported its first operating profit and its future looks bright.
By Stephen Connolly Published
-
The bond bust bodes well for equities
Rising yields on government debt herald the end of the free-money era and good news for investors.
By Max King Published