What is behind Russia's appeal?

EASTERN EUROPE

Liesbeth Rubinstein, manager of the Invesco Perpetual Emerging European fund, on the sectors driving growth in the eastern European economy.

Russia controls a significant share of the global reserves of natural resources as well as being the world’s largest exporter of energy. This brings huge financial benefits to the country as a steady flow of substantial export revenues boosts government finances as well as giving support to the corporate sector. The efficient reinvestment of resource revenues provides an opportunity for Russia to broaden its economic development. We believe this should result in real wage growth and a larger middle class. Furthermore, providing sufficient investment resources to other areas of the econom...