The most simple "Why" we have chosen Russia for coverage and analysis of economy

Making a close study of BRIC countries (Brazil, Russia, India, China), we have fixed upon Russia for the following reasons:

Russia is an unexploited territory for developing… Russia is a country where there was no market economy, a country which didn’t develop its sectors according to the laws of competition.
It is the major advantage and disadvantage of this developing country. Certainly, it is also possible to add rich natural resources. The matter is not only in hydrocarbons, but in all natural resources which are used by humanity.
Also, Russia has rather small population, only 140 + million people.
At the same time the country has huge land resource.
You want lumber? There are big reserves. Beautiful places for tourism – there are also a lot of them. You need cheap labor? There is as much as you need. The reason for that is Russia borders on China where it is advantageous to hire legally the Chinese workers or simply to make a contract of execution of the order with the Chinese company.

But as well as in any developing country, in the Russian Federation there are problems. First of all, it is insufficiently developed infrastructure of regions, peculiar mentality got from the USSR, corrupt authorities.

About political situation at present.
In our opinion the political policy of Russia is stable, political elite does not rush from side to side, the country government is executed by one team throughout the last years, and it positively influences economy. Moderate liberal reforms are also present. Now in Russia such politicians are in power that pursue a course of crisis management, and sooner or later the country will meet the crisis, more liberal politicians will come to power.
If to recall history, there are a lot of such situations. Margaret Thatcher is an excellent example of country crisis management.
We are sure, that the West can help Russia to enter upon liberal and democratic path (the USSR could not survive in the conditions of isolation and collapsed).

If to look from a position of a stock market…
Stocks of many Russian companies look like the most undervalued assets of BRIC countries(Brazil, Russia, India, China). More than 60 companies most probably will hold IPO procedure with capitalization of about $500 million.

In Russia there is no well-developed service industry, which means that the companies that will come and work under schemes already tried out in developed countries, risk to yield a great profit.
Industry in Russia demands restructuring and new technologies that are used by the western companies. Free economic zones for incentives of international capital investments in different branches of industry. Besides, labor force from China can be the advantageous factor.

In the country there is very low competitiveness in many business niches, the markets are not crowded, the Russian firms with the best will cannot enter into quality competition. There is a great number of simply blank niches in all spheres.
Nowadays in Russia there are low indices of unemployment, rapid growth of consumption (the growth of some consumer sector companies in the stock market is 50 %-60 % a year).

Well, it is not simple to do successful business in a country where there was communism, but as you know, people very quickly get used to good, and it didn’t take long to the Russians to adapt to competitive conditions of market economy.

Those who have come to earn on Russia since 2003 have made good money. They did it, at least, simply bulling on the Russian stock indices, and on IPO of the Russian companies. And, they keep on earning.

In fact, investments in any developing country are difficult and risky, the Russian stock market still does not have liquidity.
However, it is the fact that a great number of corporations of global renown entered the Russian markets. Russia grows as a consumer at high speed, more and more Russians get into a car, can pay for mortgage credit, pay for expensive services of high quality.

It may be said confidently that to earn on Russia is already possible now. Those who wish to yield a very good return from an investment do not go on highly competitive investment market of China, but they go to other countries of BRIC.
In the conditions of globalization the world changes, for instance, it is possible to call unusual relations between Russia and Germany, these countries more than others were hit by the Second World War, fighting against one another. And now Germany is one of the largest investors in the Russian power energy, economy.

Watch the developing of Russian economy with us.