Emerging Markets Investment Trust fund manager Mark Mobius says the direction of oil, commodity and gas prices will be of more importance due to the market’s dependence on those products.
Mobius says there’s still a case for investing in Russia with opportunities in commodities and consumer products.
He says: “Oil price are falling but there is no lack of foreign capital since Russian companies continue to pull in enormous amounts of foreign exchange as a result of their commodity exports. Investors generally recognise that the Georgian conflict is a minor event and the Georgian government was at fault.
“They have been impressed by the way the Russians have handled the situation diplomatically and this should give Russians better bargaining power at international forums going forward. We have not changed our stance regarding investing in Russia.”