Continued Strong Growth of Exports Is Forecast to Lead to an Increase in Foreign Exchange Reserves in Russia of About $50 Billion

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Investment risk in Russia is low and is expected to remain low in 2005. Russian investment assets are expected to perform strongly.

Research and Markets (http://www.researchandmarkets.com/reports/c26305) has announced the addition of Investment Risk Analysis of Russia to their offering

Investment risk in Russia is low and is expected to remain low in 2005. Russian investment assets are expected to perform strongly. Despite continued deterioration in relations with the U.S., geopolitical risk in Russia is low. Weakening relations with Washington has spurred Moscow to strengthen its ties with the E.U., China and Iran. These relationships are underpinning economic growth in Russia.

The centralization of economic and political power in the Kremlin is not expected to destabilize the political or social environments. On the contrary, the centralization of power will ensure that political and social risks remain low. Economic growth risk, fiscal risk and balance of payments risk are also low. Economic growth will accelerate in 2005 on the back of rising international oil prices and higher oil production. Developments in the oil sector will also prevent Russia's substantial fiscal surplus from declining.

The large fiscal surplus combined with the limited debt of the public sector will minimize fiscal risk. Balance of payments risk in Russia will be almost non-existent in 2005. Continued strong growth of exports will lead to an increase in foreign exchange reserves of about $50 billion. This will support ruble appreciation against both the dollar and the euro. Russian assets appear cheap relative to other oil producing countries.

For more information visit http://www.researchandmarkets.com/reports/c26305

Laura Wood

Senior Manager

Research and Markets

press@researchandmarkets.com

Fax: +353 1 4100 980

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Laura Wood
RESEARCH AND MARKETS
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