Time to Invest in Russia

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Time to Invest in Russia

As Vladimir Putin returns to the presidency of Russia he “orders” increased investment by the government and pressure on government run industries to modernize and become more efficient. If you are thinking that this is the time to invest in Russia please remember that Mr. Putin’s decree for a so called new economy sounds a lot like the pronouncements the commissars under the old communist regime. Then the question is, what is a good investment in Russia today?
Because of the return of Mr. Putin and because the world economy is ever so slowly improving after the worst recession in three quarters of a century let’s say that it is time to invest in Russia. What does Mr. Putin’s call for a new economy mean? Revamping old state run industries may make things run more efficiently but this has little to do with private investors.
Russia is the second biggest producer of oil in the world at just over 10 million barrels a day as of 2010. The nation’s economy consumes 2.2 million barrels a day and exports 5 million barrels a day. Its proven reserves are around 69 billion barrels. It is the world’s second greatest natural gas producer as well at 588 billion cubic meters a year. It uses 414 billion cubic meters of gas a year and exports 200 billion cubic meters making it the world’s leading natural gas exporter. Its reserves are estimated at 45 trillion cubic meters as of 2011 giving it first place in the world. But, if it is time to invest in Russia is it time to invest in oil companies in Russia? Mr. Putin, in fact, is trying to decrease the dependence of Russia on oil and gas exports. On a profitable investment timeline it may be time to get out of Russian oil stocks and not in as European threatens to fall into recession again and drive oil prices down.
The goal is to improve the business climate in order to attract more investment. This includes decreasing the still heavy hand of the state. Mr. Putin’s orders are to produce 25 million high paying jobs by 2020. Sounds like more of the commissars Mr. P. However, the goal of producing more high tech products is not just a pipe dream. Russia has skilled scientists and technicians. They, after all, are the link to the International Space Station now that the fleet of Space Shuttles have been retired.
The complete range of Russian industry according to the CIA Factbook looks like this:
Mining and extractive industries producing coal, oil, gas, chemicals, and metals
All forms of machine building from rolling mills to high-performance aircraft and space vehicles
Defense industries including radar, missile production, and advanced electronic components, shipbuilding
Road and rail transportation equipment
Communications equipment
Agricultural machinery, tractors, and construction equipment
Electric power generating and transmitting equipment...

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Time to Invest in Russia

  1. 1. Time to Invest in Russia
  2. 2. To see a complete version of thispresentation and to obtain our free EBookfollow this link:http://portal.sliderocket.com/BLOUC/Time-To-Invest-In-RussiaRead the Forex Conspiracy Report forinsights into trading foreign currencies. Getyour copy athttp://portal.sliderocket.com/BLOUC/Time-To-Invest-In-Russia
  3. 3. As Vladimir Putin returns to the presidencyof Russia he “orders” increased investmentby the government and pressure ongovernment run industries to modernizeand become more efficient. www.ProfitableInvestingTips.com
  4. 4. If you are thinking that this is the time toinvest in Russia please remember that Mr.Putin’s decree for a so called neweconomy sounds a lot like thepronouncements the commissars underthe old communist regime. www.ProfitableInvestingTips.com
  5. 5. Then the question is, what is a goodinvestment in Russia today? www.ProfitableInvestingTips.com
  6. 6. Because of the return of Mr. Putin andbecause the world economy is ever soslowly improving after the worstrecession in three quarters of a centurylet’s say that it is time to invest in Russia. www.ProfitableInvestingTips.com
  7. 7. What does Mr. Putin’s call for a neweconomy mean?www.ProfitableInvestingTips.com
  8. 8. Revamping old state run industries maymake things run more efficiently but thishas little to do with private investors.Russia is the second biggest producer ofoil in the world at just over 10 millionbarrels a day as of 2010. www.ProfitableInvestingTips.com
  9. 9. The nation’s economy consumes2.2 million barrels a day andexports 5 million barrels a day.Its proven reserves are around 69billion barrels.It is the world’s second greatestnatural gas producer as well at 588billion cubic meters a year.www.ProfitableInvestingTips.com
  10. 10. It uses 414 billion cubic meters of gas ayear and exports 200 billion cubic metersmaking it the world’s leading natural gasexporter. www.ProfitableInvestingTips.com
  11. 11. Its reserves are estimated at 45 trillioncubic meters as of 2011 giving it firstplace in the world. www.ProfitableInvestingTips.com
  12. 12. But, if it is time to invest in Russia is ittime to invest in oil companies inRussia? Mr. Putin, in fact, is trying todecrease the dependence of Russia onoil and gas exports. www.ProfitableInvestingTips.com
  13. 13. On a profitable investment timeline it maybe time to get out of Russian oil stocksand not in as European threatens to fallinto recession again and drive oil pricesdown. www.ProfitableInvestingTips.com
  14. 14. The goal is to improve the businessclimate in order to attract moreinvestment. This includes decreasing thestill heavy hand of the state. www.ProfitableInvestingTips.com
  15. 15. Mr. Putin’s orders are to produce 25 millionhigh paying jobs by 2020. Sounds likemore of the commissars Mr. P. www.ProfitableInvestingTips.com
  16. 16. However, the goal of producing more hightech products is not just a pipe dream.Russia has skilled scientists andtechnicians. www.ProfitableInvestingTips.com
  17. 17. They, after all, are the link to theInternational Space Station now that thefleet of Space Shuttles have beenretired. www.ProfitableInvestingTips.com
  18. 18. The complete range of Russian industry according to the CIA Factbook looks like this: • Mining and extractive industries producing coal, oil, gas, chemicals, and metals • All forms of machine building from rolling mills to high-performance aircraft and space vehicles • Defense industries including radar, missile production, and advanced electronic components, shipbuilding • Road and rail transportation equipment • Communications equipment • Agricultural machinery, tractors, and construction equipment • Electric power generating and transmitting equipment • Medical and scientific instruments • Consumer durables, textiles, foodstuffs, handicrafts www.ProfitableInvestingTips.com
  19. 19. The World Bank has a Doing BusinessIndex in which Russia currently ranks#120 in the world (#1 is best). www.ProfitableInvestingTips.com
  20. 20. Mr. Putin wants the country up to at least#20 by 2018.If you think that this wish makes it time toinvest in Russia please remember thatRussia produces as many bureaucrats asthe Ukraine produces potatoes. www.ProfitableInvestingTips.com
  21. 21. Unlike potatoes bureaucrats are notconsumed.They multiply.While good fundamental analysis isessential to profitable investing it can bedifficult to factor in the costs in Russia of abloated and recalcitrant bureaucracy. www.ProfitableInvestingTips.com
  22. 22. A place for possible investment in Russiawill be the group of companies that maybe privatized in the coming years.These will not be in defense or naturalresources. www.ProfitableInvestingTips.com
  23. 23. For more insights and useful informationregarding investments and investing, visit
  24. 24. www.ProfitableInvestingTips.com

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