Russia Special: The oil effect

RUSSIA

Maria Merricks investigates how Russia can benefit from rising oil prices.

Turmoil in the Middle East has sent the price of oil soaring. While a sharp rise is likely to prove a headwind for many markets, experts suggest Russia could well be an exception. The country has both macroeconomic and bottom-up factors on its side. For this reason, managers say now is a compelling time for investors to consider opportunities in the country. An oil-dominated market Historically, the performance of the Russian equity market and the price of oil have been closely correlated. According to Matthias Siller, investment manager of Baring's Russia fund, an oil price aver...